We are in a 'war time scenario' and the old rules are out the window, the Public Expenditure Minister has told Newstalk Breakfast.

Michael McGrath was speaking as Government prepares to cut the excise duty on petrol and diesel in response to skyrocketing prices at the pump.

Meanwhile, more than 2,200 Ukrainians fleeing the Russian invasion have arrived in Ireland seeking help.

The UN estimates that more than two million people have now fled the country as the Russian bombardment continues.

Petrol and diesel prices have gone above €2 per litre on many forecourts around the country in the past week and the Government now plans to slash that price by between 15c and 20c per litre.

On Newstalk Breakfast Minister McGrath said the move would cost the Exchequer “hundreds of millions of Euro”, noting that it would be kept under review as the conflict continues.

“I think what we have learned over the course of the past few years, first of all dealing with a global pandemic, is that we have to be agile,” he said.

“We are in a war-time scenario. Tragically, we have war in Europe. Two million refugees in two weeks have had to flee their homes in Ukraine.

“So, in many respects, the old rules are out the window. Governments have to be in a position to respond swiftly to the circumstances that we face.”

Fuel price

Opposition parties have warned that the cuts are not enough – with Sinn Féin 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 called for excise to be continuously cut as prices rise to keep fuel at €1.75.

Minister McGrath rejected the proposal – insisting, “Government cannot fix the price charged at the pumps”.

“I would expect the opposition to say that whatever Government decides does not go far enough and that we should be doing more,” he said. “That is their role as they see it.”

"Ease the burden"

He said the government believes it can “make a contribution and ease the burden” for people who are struggling with rising prices.

“These are extraordinary times,” he said. “We are seeing fuel prices that are unbearable for many people.

“We acknowledge the suffering people are experiencing at this moment in time. We know it is inextricably linked to the appalling situation unfolding in Ukraine and unfortunately, that is also having a consequence here even though it is of a different order to the humanitarian crisis unfolding in Ukraine.”

Minister McGrath said Ireland will be generous to the people of Ukraine who arrive in Ireland.

“It is heart-breaking,” he said. “It is just terrible to see the human pain and suffering and loss the people there are enduring so we do have an obligation and we will look after people who come here.”

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