Burke defends fuel excise cuts due to budget pressure

Enterprise Minister Peter Burke has defended the government decision to continue fuel excise cuts, insisting the move will benefit households and the wider economy.

The Longford Westmeath TD said the measures would help reduce inflation, easing pressure on consumers already facing higher household and grocery costs.

On RTÉ's This Week programme on Sunday, the Mullingar TD spoke of the measures to address the fuel crisis: “This will reduce inflation by about 0.6% and that will mean, be it through our shops, our groceries, it is keeping our costs down a little bit, notwithstanding there are very significant challenges.”

The Fine Gael minister acknowledged that excise reductions could not continue indefinitely. He said government decisions had to be based on economic conditions rather than the prospect of further fuel protests.

Minister Burke said the coalition were “minded” not to allow petrol and diesel prices to rise “well beyond €2” but declined to say whether continuing the excise cuts would force the government to abandon or scale back any commitments made ahead of October’s budget.

His comments come as the government are facing competing demands to support households while managing the cost of maintaining measures that have reduced the price of fuel.

Speaking at the weekend, Minister Burke said the Budget 2027 would focus on making childcare more affordable for families and addressing the ongoing cost-of-living crisis, but stressing that the situation remained fluid due to international developments: “Things are changing every day,” he said, pointing to the continuing war in Iran and its potential impact on the economy.

The government will now face pressure to balance measures aimed at protecting household incomes with the need to maintain control of public finances as preparations for the budget continue.