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Budget 2027 is 25 days out and Fine Gael is hinting the fuel excise cut is staying

Published 14:00 12 Sept 2026 BST

Vese Hyseni
Budget 2027 is 25 days out and Fine Gael is hinting the fuel excise cut is staying

Homepolitics

Ireland’s fuel crisis is still far from forgotten

Fine Gael entered the final weeks before Budget 2027 with a clear focus on the cost of living, but the pressure facing households was hard to ignore outside the party's meeting in Gorey, Co Wexford.

At a nearby forecourt, diesel was selling for €2.03.9 a litre, while petrol stood at €1.92.9. Those prices remain a sensitive issue after fuel costs triggered protests earlier this year and pushed the Government into action.

The measures introduced at the time saw diesel excise reduced by 32 cent per litre and petrol duty cut by 27 cent. They were originally intended as temporary relief, but Simon Harris has now indicated that motorists should not expect those reductions to disappear in November.

The Tánaiste and Minister for Finance has also signalled another possible measure for households, with a cut to the tax charged on home heating oil expected to be announced shortly.

The Government’s Budget plans are facing questions

Income tax is set to form another part of the Government's offering. Fine Gael is preparing a reduction worth several hundred euro, which the party believes will provide some much-needed breathing room for households dealing with rising costs.

That figure has already attracted criticism, however. Minister for Public Expenditure Jack Chambers acknowledged that the reduction would be relatively modest when spread across a full year.

Harris has defended the proposal by arguing that an amount does not have to be huge to make a difference, pointing to his own experience of growing up in a household where a few hundred euro mattered.

The Government is also facing questions over how much it plans to spend overall, with warnings that the size of the wider Budget package could be considerably greater than the tax-cut headline suggests. At the same time, there is still uncertainty surrounding a planned carbon tax increase due in October.

The voter Fine Gael hopes to win over with Budget 2027

Fine Gael's political pitch has centred heavily on working households. During the Gorey gathering, TDs repeatedly returned to Leo Varadkar's familiar description of the "person who gets up early in the morning", signalling the type of voter the party is hoping to reach with its Budget measures.

Inside the meeting, there was plenty of optimism. Fine Gael has been buoyed by its Galway-West by-election victory and the relatively strong position of the Exchequer.

TDs were still cautious when discussing conversations with voters, following the traditional approach of avoiding any suggestion that an election-style campaign is already under way.

The Dáil will return next Wednesday, leaving the Government with only a short period to finalise the details before Budget day.

The real test of Budget 2027 will come at the checkout

For people at home, much of the debate will eventually come down to a handful of practical changes. The key issue for motorists is whether the fuel duty reductions remain after November, while households using heating oil will be watching closely to see how much relief they receive. 

The income tax announcement will also need to translate into a noticeable difference in people's pay packets if the Government wants to convince voters that the measures are worthwhile.

With fuel prices still close to €2 a litre, the Budget faces a simple test: whether the financial relief announced in October feels significant once people actually see what it means for their weekly spending.