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Fuel rationing looms amid escalating energy crisis
22 Mar
Summary
- Ireland faces potential fuel rationing due to rapid energy price hikes.
- Government plans fiscal reliefs including excise duty cuts.
- A €5 billion surplus is available to combat the energy crisis.
Ireland is anticipating potential fuel rationing for households and businesses amidst rapidly escalating energy prices, driven by the ongoing Middle East conflict. The government is set to unveil a series of fiscal measures to mitigate the impact of soaring oil prices.
These immediate reliefs will include excise duty cuts for motorists, increased fuel allowances for the elderly and vulnerable, and support for the haulage sector through duty cuts and rebates. Cuts to home heating oil excise duties are also planned.
Beyond short-term aid, senior ministers are preparing for a sustained crisis, leveraging a substantial €5 billion surplus. This financial cushion is crucial for longer-term interventions and has bolstered Ireland's credit rating to AA+.
Longer-term strategies may involve further energy bill assistance for households and demand management measures for large industrial energy users, similar to those implemented following the Russian invasion of Ukraine. The government is also encouraging remote working and monitoring international responses to the energy shock.
