Excise duty is to be reduced from midnight, the Government will announce today. 

The measure is part of a package of changes designed to reduce the cost of fuel and energy.  

Tánaiste and Minister for Finance Simon Harris will present the measures to Cabinet this morning, which will allow the Dáil to vote on a financial resolution later today. 

Further legislation will also be required later this week. 

On Newstalk Breakfast, political correspondent Seán Defoe said the details have already been briefed to the media. 

“Excise duty is going to be cut from midnight tonight, so 20 cents on a litre of diesel and 15 cents on a litre of petrol,” he explained. 

“That's going to last until the end of May, so a little bit longer than we were expecting, even yesterday morning.

“And then there is a second cut on a different levy, the NORA levy, that's the National Oil Reserve Agency levy, which is about two cents a litre. 

“So, overall 17 cents on petrol, 22 cents on diesel.” 

A man holding a petrol pump. Picture by: Miljan Živković / Alamy Stock Photo

Since the war in Iran began, severe disruption in the Strait of Hormuz has caused chaos with international energy supply chains. 

As a result, some people have reported that the cost of their home heating oil has nearly doubled. 

The Government hopes the two cents a litre cut in the NORA levy will bring prices down. 

“[That] is a lot less than a lot of people would have been hoping for,” Seán continued. 

“With prices running around 160 to 180 a litre there, it's a pretty small drop if you're filling up your tank after the winter.” 

Hauliers, who were among the most vocal with their concerns about the cost of fuel, will also be able to claim back some of the extra costs they have incurred over the last few weeks. 

“There is going to be that rebate scheme for hauliers and for bus operators,” Seán said. 

“That will be backdated to January, so it will allow them to claim some of the extra costs that they've felt over the last few weeks. 

“It will be extended, as far as I understand, out until the end of May to keep supply chains running.” 

Hauliers in Dublin. Picture by: RollingNews.ie

Finally, for those people on the fuel allowance, the Government will announce they will benefit from additional support. 

“For about 470,000 people [on the fuel allowance], that is going to be doubled,” Seán explained. 

“So, it was €38 a week, it's going to be doubled up to 76 and extended out into April. 

“It was due to expire at the end of March.” 

Sinn Féin has urged the Government to go further and said it will propose amendments to the financial resolution when it comes before the Dáil. 

Main image: Filling a car with petrol in County Donegal. Picture by: Alamy.com.