Cabinet agree to cut on excise duty on diesel and petrol

The Cabinet has agreed to cut the excise duty on petrol and diesel in a bid to give hard pressed motorists and hauliers a breather from the almost daily rise in costs that have sent motor fuel sailing over the €2 per litre mark.

The reduction will be 20 cent per litre on petrol and 15 cent per litre of diesel.

A cut of 2 cent per litre on green diesel has been agreed.

The reduction will be in place until 31 August and will cost €320 million.

A Cabinet meeting is being held this morning to sign off on the measures, which were put forward by Minister for Finance Paschal Donohoe.

Sinn Féin had called for measures that would result in a 25 cent cut per litre of diesel and petrol.

The party also wants any cuts capped at €1.75 per litre to ensure the reductions are not quickly eroded.