'The public will be back on the streets if we do this': As fuel hovers just below the 2 euro mark, ministers are warning of 'a massive public backlash' and fresh blockades are imminent if they cut cost supports

Published: 16:47, 13 August 2026 | Updated: 16:49, 13 August 2026 Divisions have emerged in Cabinet over whether or not to continue providing fuel supports amid growing fears that rising prices at the pumps will provoke another major public backlash. Ministers this weekend warned if finance ministers Simon Harris and Jack Chambers reverse cuts in excise on petrol, diesel and green diesel, brought in after the April fuel protests that almost ground the country to a halt, it will provoke a pre-budget revolt. The Government twice intervened in response to increased energy prices – once in March and again in April – cumulatively reducing the excise duty on auto diesel, petrol and marked gas oil (green diesel) on a VAT-inclusive basis by 30 cent, 25 cent and 5.4 cent respectively. In June, the Coalition extended the excise reductions on petrol and diesel until September 1. While Tánaiste and Finance Minister Harris has pledged there will be ‘no cliff edge’, as it currently stands the Government plans to restore the previous rates over the following four months. Mr Harris fears his stated plan to introduce tax cuts for the so-called ‘squeezed middle’ – revealed in a recent interview with the Irish Mail on Sunday – could be affected if the State has to continue to intervene to ease the pain caused by soaring oil prices driven by the ongoing conflict in the Middle East. The reliefs have been costly. A report by the Tax Strategy Group (TSG) noted that, ‘if the cuts were extended to the end of the year the estimated cost of this further extension would be €501.8million.’ However, there is growing Cabinet anxiety over the prospect of petrol and diesel prices again going above €2 per litre at forecourts. Ministers this weekend warned if finance ministers Simon Harris and Jack Chambers reverse cuts in excise on petrol , diesel and green diesel, brought in after the April fuel protests that almost ground the country to a halt, it will provoke a pre-budget revolt One minister told the MoS: ‘The public will be back on the streets if we do that [remove excise reliefs]. It will dominate the pre-budget run-up – and the aftermath, too. ‘Any gain in a beefed-up tax package will be utterly squandered.  'What is the point in giving the voters a billion euro in tax cuts and then taking them straight back again by ending fuel subsidies?’ Another minister warned: ‘We will have absolutely no credibility if we do this.  'We keep on telling the voters we are awash with so much cash, little of which they are seeing, and then we take even more away from them than we will give in tax cuts.  'There will be a national furore if we do that.’ Fuel protesters clash with gardaí outside the Whitegate Oil Refinery in Cork in April  Ministers were already angered by the perceived hard line on spending taken by Public Expenditure Minister Chambers. One senior Government source warned: ‘Simon [Harris] will need to be very careful. Ministers are in a state of mutiny already over the estimates.  'A war over fuel prices won’t run. This budget could start to come off the rails before it even begins if this becomes a public crisis.’ Mr Harris pointedly declined to state this weekend if he will end or extend the fuel subsidies. In response to queries, he stressed he plans to ‘reward hard work and reduce family costs’. Tractors block O'Connell Street on the fifth day of the National Fuel Protest, in Dublin, Ireland, Saturday, April 11, 2026 He told the MoS: ‘We want to make sure hard-working people can keep more of their own money. 'I want to make sure we look at key areas like childcare and energy costs and see how we can structurally reform and reduce these costs.’ In what will be seen as an indication that excise duties will not be restored unless fuel costs fall, Mr Harris added: ‘I’ve been clear for some time this has to be a budget for people who are getting up earlier and earlier every morning, paying large bills and still just about getting by.  'Work has to pay – it has to be rewarded. ‘We have to look at every lever at our disposal in every Government department. That’s what we will be doing over the coming months in advance of October 6.’ A senior Government source also said ‘there will be decisive interventions in the budget that will be framed around assisting people with the cost of living’. Regarding excise duties, they said: ‘The Tánaiste has said repeatedly that, ultimately, the greatest economic intervention we can see is de-escalation in the Middle East – and that is still the case. Tractors block O'Connell Street on the fifth day of the National Fuel Protest, in Dublin, Ireland, Saturday, April 11, 2026 In June, the Coalition extended the excise reductions on petrol and diesel until September 1 ‘But it has always been the position of the Government that we keep our response under review, monitor developments closely and control what we can.’ They added: ‘The Tánaiste has been clear if the wholesale price of oil is falling, this should ultimately be passed on at the pump.’ In an indication of impatience over high prices, the source said: ‘The Tánaiste’s officials have engaged with representatives for fuel importers, distributors and retailers in recent weeks around clarity and transparency on cost.  'This engagement will continue.’ The source stressed the volatility of oil prices has added to the difficulty of planning ahead. ‘Two months ago, oil was close to $100 per barrel. One month ago, it was just over $70. A week ago, it was just over $95 and today [August 7], it is just over $80.’ However, the CEO of Fuels For Ireland, Kevin McPartlan, issued a stark warning to the Government not to reverse the cuts made in response to the April crisis. Mr McPartlan told the MoS: ‘After several weeks of very sharp increases in international wholesale prices for petrol, diesel and home heating oil, markets have now stabilised.  'But unfortunately, they have stabilised at a very high level, and motorists and households are now paying the price. ‘If wholesale prices remain where they are today, the Government should not add further pressure by proceeding with planned increases in fuel taxation and other policy costs.’ He added: ‘Between now and January 1, motorists face the full reinstatement of the temporary excise duty reduction, a further increase in carbon tax on Budget Day, and higher renewable fuel blending obligations. ‘Taken together, these measures could add around 35 cent per litre to the price of diesel.’ Mr McPartlan added: ‘The Minister for Finance should make it clear now that if international fuel prices remain exceptionally high, the planned reinstatement of excise duty will be paused.  'There is little sense in Government amplifying the impact of global markets by imposing additional domestic costs at the same time.’ Sorry we are not currently accepting comments on this article.