{"id":638393,"date":"2026-08-15T09:14:18","date_gmt":"2026-08-15T09:14:18","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/638393\/"},"modified":"2026-08-15T09:14:18","modified_gmt":"2026-08-15T09:14:18","slug":"nerves-in-government-about-potential-protests-as-fuel-prices-inch-closer-to-e2-per-litre-again-the-irish-times","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/638393\/","title":{"rendered":"Nerves in Government about potential protests as fuel prices inch closer to \u20ac2-per-litre again \u2013 The Irish Times"},"content":{"rendered":"

Just four short months ago, farming contractor Christopher Duffy stood on O\u2019Connell Bridge proclaiming victory over the Government after a week of disruption caused by fuel price protests<\/a>. Duffy, who had become one of the de facto leaders of the protests, defiantly told a crowd: \u201cWe have the country by the balls.\u201d <\/p>\n

In the face of protests, the Coalition had just decided to increaseits spending on fuel and cost-of-living supports to \u20ac750 million. Since then, approved spending has risen to about \u20ac1 billion after cuts to excise on fuel were extended at the end of June. <\/p>\n

But with the tax due to begin reverting to its normal level from September 1st, Duffy last weekend harangued the Taoiseach at the Tullamore Show.<\/p>\n

With the political system still in its late summer slumber, the planned reversion to higher rates of excise on petrol and diesel is looming as the first big challenge facing the Coalition \u2013 and it invites a reckoning with the most dramatic political moment of the year so far. <\/p>\n

\"ChristopherChristopher Duffy with tractors and trucks blocking O\u2019Connell Street in Dublin during the spring protests. Photograph: Chris Maddaloni <\/p>\n

In June, Coalition leaders agreed to stall the planned restoration of fuel excise cuts, which had been due to expire on July 31st, instead gradually restoring them through monthly tapering until December. The first increment \u2013 of 9 cents per litre on petrol, 10 cents on diesel \u2013 is due on September 1st. <\/p>\n

Just as these increases hover into view, forecourt prices have begun to drift back up, driven by ongoing volatility and disruption in the Middle East. On Monday, the AA said diesel was on average \u20ac1.92 per litre in August, up 19 cents on July, with petrol up to \u20ac1.84 from \u20ac1.75.<\/p>\n

If those prices hold, or climb, tapering the excise cuts will bring forecourt prices close to \u2013 or over \u2013 the psychologically important \u20ac2 a litre mark \u2013 seen as entering the danger zone for public backlash. <\/p>\n

[\u00a0Cutting excise duties on petrol and diesel is the wrong approach, EU commissioner warnsOpens in new window<\/a>\u00a0]<\/p>\n

Meanwhile, according to figures released to the Irish Independent this week, tens of millions of the \u20ac220 million allocated to fuel support packages for hauliers and farmers announced in April remain unspent. While senior sources are insistent that for the hauliers scheme at least, almost all the money will end up being paid out, it is likely that much will remain unspent from schemes to support farmers, fishers and contractors. Representative groups have complained of members being bogged down in red tape. <\/p>\n

Much focus \u2013 and political pressure \u2013 is likely to build in the weeks ahead. In fact, it has already begun to.<\/p>\n

Opposition parties this week called for the Government to pause its plan to reverse the excise cuts, while lobby groups have also turned up the volume. Both the Irish Farmers Association and Irish Road Haulage Association have said moves to reverse the excise cuts should be stalled. <\/p>\n

Kevin McPartlan, chief executive of fuel industry lobbyist Fuels for Ireland, says it would be \u201cpolitical suicide\u201d to reverse excise cuts with prices where they are. <\/p>\n

\"FuelsFuels for Ireland chief executive Kevin McPartlan. Photograph: Sam Boal\/Collins Photos <\/p>\n

Publicly, the Government is in a holding pattern, saying it is continuing to monitor the situation closely and reserves the right to adjust its response as required. \u201cThe Government will continue to act in a way that protects the most vulnerable and sustains our economic stability.\u201d<\/p>\n

Given the money involved, guardedness is to be expected \u2013 not to mention the volatility in the market. It is possible that the price at the pump may soften before the end of the month. However, the abiding fear among Ministers who speak about the matter privately is that is not likely \u2013 giving the Coalition a decision to make. <\/p>\n

Those involved in that call believe there are roughly three options: proceeding as planned, changing the pace of tapering or throwing the plan out and keeping the excise low with no drop-dead date. The last of those is seen as ruinous to the Government\u2019s fiscal credibility, meaning it is highly unlikely \u2013 but there are clear nerves about proceeding as planned.<\/p>\n

\u201cIf we\u2019re at the kind of levels we\u2019re at now, it\u2019s going to be very hard to start unwinding it,\u201d says one Cabinet source. \u201cIf a Government tax brings that over \u20ac2 [per litre], as opposed to market movements, that\u2019s just politically stupid.\u201d<\/p>\n

A second Cabinet source said they believed the first increase could well be delayed until after September 1st, a view shared by another Government source earlier this week. <\/p>\n

[\u00a0Why are fuel prices climbing again and how much more will I be paying?Opens in new window<\/a>\u00a0]<\/p>\n

A third senior Minister agrees there is a \u201cdefinite consideration\u201d of revisiting what was agreed in June \u2013 which is now seen as \u201cunlikely to hold\u201d: \u201cThe chances of what we agreed in June holding over a four-month period is slim,\u201d the Minister says, arguing that two increases before the budget<\/a> are unlikely and \u201csome stay or pause\u201d would be likely in order to create space around the budget. <\/p>\n

\u201cThe run-in to the budget shouldn\u2019t be dominated by a big increase happening just before.\u201d <\/p>\n

One issue is that stalling the September increase would almost certainly mean recalling the D\u00e1il, a move that senior sources say would look skittish \u2013 so in the absence of a surge in prices on the forecourt towards the end of the month, a more likely path is to allow the first increase but to revisit plans to put an 8-cent increase on both petrol and diesel on October 1st. <\/p>\n

It is unsurprising that the budget rides high in political considerations of fuel prices: while billions in spending increases and tax cuts are expected, there is also a widespread acceptance among Ministers that rising prices and rapidly multiplying demands for service improvements will leave a lot of voters disappointed. <\/p>\n

The experience of the fuel protests still spooks the political classes \u2013 and it is not hard to see why. Documents released under Freedom of Information laws show the signals that were being sent to the Department of Enterprise during the protest by agencies involved in key sectors of the economy. <\/p>\n

A paper given to senior officials in that department showed that while upheaval on international fuel markets was manageable, domestic volatility \u201cdominated\u201d a discussion with IDA Ireland, Enterprise Ireland and tourism agencies. <\/p>\n

Of the protests, inward investment agency IDA Ireland told the department that \u201congoing operational disruptions [are] harmful to Ireland\u2019s reputation for reliability and supply-chain resilience\u201d, while tourism chiefs warned that \u201cdomestic volatility [is] causing reputational harm [and] receiving international media coverage\u201d.<\/p>\n

This week, social media and messaging platforms have seen plans for another protest shared \u2013 although predicting just how widespread any action could be is hard. <\/p>\n

Sonny Boyd, a tow truck operator who is an administrator for one of the most popular Facebook pages involved in organising protests in the spring, says something could gather steam if increases go ahead; but his current judgment is that \u201cit\u2019s not expensive enough for people to protest\u201d. <\/p>\n

Security sources \u2013 badly burned by the chaos unleashed in April \u2013 acknowledge there is discontent but say a second iteration of the spring protests is \u201cnot a significant concern at the moment\u201d. <\/p>\n

Among the politicians approached by fuel protesters at the Tullamore Show was Midlands North West MEP Barry Cowen. The Fianna F\u00e1il MEP believes the original plan to taper the excise cuts was a good one. <\/p>\n

However, he adds: \u201cNow [prices] are going back up again, so they\u2019re in a bit of a dilemma.\u201d Amid ongoing turmoil, his advice to colleagues in domestic politics is that \u201cit\u2019s a time for cool heads and a bit of reason here, because it could get a lot worse before it gets better.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Just four short months ago, farming contractor Christopher Duffy stood on O\u2019Connell Bridge proclaiming victory over the Government…\n","protected":false},"author":2,"featured_media":638394,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[73],"tags":[95270,10471,79,18,189695,19,18929,17,31232,175758],"class_list":["post-638393","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-barry-cowen","tag-budget","tag-business","tag-eire","tag-fuel-protests","tag-ie","tag-iran","tag-ireland","tag-irish-farmers-association","tag-irish-road-haulage-association"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/117098766732073068","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/638393","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=638393"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/638393\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/638394"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=638393"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=638393"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=638393"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}