Ministers have signed off on a plan to cut excise duty on diesel, petrol and green fuel.
The plan will see a 15c cut in the price of diesel, a 20c cut in the price of petrol and a 2c cut in the price of green diesel.
Should it be approved by the Dáil later today, the changes will take effect from midnight until the end of august.
Sinn Féin is warning the measures do not go far enough – calling for fuel to be immediately reduced to €1.75 per litre.
The party’s finance spokesperson Pearse Doherty said prices will continue to rise as the war continues and excise should be continuously cut as prices rise to keep fuel at €1.75.
“Obviously nobody knows how long the war is going to last,” he said. “Nobody knows the impact of the sanctions.”
“That is why this would need to be monitored on a three-monthly basis to see what type of action is required.
“But hopefully, you would see some stabilisation in these prices sooner rather than later and that they would start to fall themselves.”
He said the price of home heating oil has increased by €700 since the start of the year and called for excise to be “scrapped completely” until prices begin to reduce.
Government resistance to changing the excise duty began to crumble as the war in Ukraine led to another severe spike in the cost of fuel.
This morning an incorporeal Cabinet meeting will approve the cut, before a press conference at 11am and a financial resolution going to the Dáil in the afternoon.
It's expected the cuts will amount to a 15c reduction in a litre of diesel and 20c on a litre of unleaded petrol.
While the measure will make an immediate impact, sources have warned it may not last long – with global supply pressures likely to undo the impact of this measure in a matter of weeks.
Cuts to VAT may be considered later this week, with the Government waiting for the EU to issue advice to member states.
Oil prices hit a new 14-year high earlier this week – with drivers urged not to panic buy as petrol and diesel prices surge.
Additional reporting Caoimhseach Connolly and Michael Staines.