Fuel Crisis Update: what Irish farmers are entitled to and how to claim it

A practical guide to the Government relief now in place, including the new €100m farm subsidy scheme, two rounds of excise cuts, and the carbon tax deferral.

What has happened

In late February 2026, US-Israeli military strikes on Iran triggered a major disruption to global oil supply. Iran responded by effectively closing the Strait of Hormuz, through which roughly one fifth of the world’s oil flows, sending Brent crude past $100 per barrel, up more than 50%. Green diesel, home heating oil and pump diesel all surged sharply in Ireland. Fertiliser costs also came under pressure due to rising gas prices.

In Summary:

Supply now: Fuel supply has stabilised. Protest blockades at Whitegate and key depots have been cleared. No shortage exists.
Excise cuts: Temporary MOT reductions have been introduced and passed on to consumers.
Carbon tax: The planned May carbon tax increase has been deferred to October 2026.
New scheme: €100m Agricultural Fuel Subsidy Scheme announced — approximately 20c/litre on marked gas oil. Applications opening shortly.

Government relief now in place

Mineral Oil Tax (MOT) reductions

Following two rounds of cuts, current VAT-inclusive MOT reductions are:

• Petrol: 15 cent per litre

• Auto diesel: 20 cent per litre

• Green diesel (marked gas oil): 3 cent per litre

NORA Levy reduction

The National Oil Reserves Agency (NORA) levy has been reduced by 2 cent per litre to a nominal amount for two months, covering petrol, auto diesel and home heating oil.

Diesel Rebate Scheme

The maximum repayment for hauliers and bus operators has increased from 7.5 cent to 12 cent per litre for diesel purchased between 1 January and 30 June 2026. If you use contracted hauliers or agricultural contractors, make sure they are availing of this — it should reduce cost pressure and ideally be reflected in what they charge you.

Fuel Allowance extension

The fuel allowance season has been extended by four weeks. Approximately 470,000 qualifying households will receive an additional €152 in total.

Carbon tax deferral

The planned carbon tax increase, originally due in May, has been postponed to October 2026. This affects the price of green diesel (marked gas oil), kerosene and home heating oil. Plan your purchasing accordingly before October.

New: €100m Agricultural Fuel Subsidy Scheme. Act before it opens

• Eligible farmers will receive approximately 20 cent per litre on marked gas oil (green diesel), based on verified 2025 fuel use.

• Payments are backdated to March 2026 and run until July 2026. Time is limited.

• The application form is being finalised by the Department of Agriculture and is not yet open.

• Start now: gather all 2025 receipts, delivery dockets and supplier invoices for marked gas oil.

• Do not wait for the form to be published. Incomplete records are the most common barrier to a successful claim.

Six steps to take right now

1. Get your 2025 fuel records in order

This is the single most time-sensitive action. The €100m subsidy will pay approximately 20 cent per litre on marked gas oil, but your claim will be based on verified fuel use in 2025. Pull together all receipts, delivery dockets and supplier invoices now. If any records are missing, contact your supplier for duplicate documentation immediately.

2. Plan fuel purchasing around the October carbon tax date

With supply now stable, there is no reason to panic-buy. However, if you have storage capacity for green diesel or kerosene, locking in volume before the carbon tax increase takes effect in October is worth considering. Always get a price confirmed in writing before committing.

3. Audit your fuel consumption

Go through farm operations line by line. Even a 10–15% reduction in consumption has a significant cash impact at current prices. Key areas:

• Tractors and machinery - consolidate field runs where possible

• Grain and crop drying - optimise settings, dry only when necessary

• Livestock buildings - review heating requirements now that spring has arrived

• Farm transport - minimise empty runs, consolidate deliveries

4. Service your machinery

Tyre pressures, engine servicing and fuel filters all affect consumption directly. An under-serviced tractor can burn 10–20% more diesel than it should. Address any outstanding servicing now.

5. Review fertiliser purchasing

Fertiliser prices remain under pressure because gas is a key input in nitrogen production. Discuss with your agronomist whether forward purchasing makes sense for your holding and cash flow position.

6. Report price gouging if it occurs

The pricing crisis of early March has eased, with two rounds of excise cuts now passed on. If you believe you are still being charged disproportionately, report it to the CCPC at www.ccpc.ie or by calling 01 402 5555.

Longer term: building energy resilience on the farm

The events of 2026, like 2022 before them, have demonstrated the structural risk of dependence on imported fossil fuels. The case for investing in on-farm renewable energy has rarely been stronger. SEAI grants and TAMS III supports are available across a range of technologies, and the payback period on these investments is considerably shorter when oil prices are elevated.

Options worth exploring include solar PV, small to medium-scale wind, and heat pump technology. The right combination will depend on your enterprise type, land, buildings and capital position.

Get in touch to discuss what makes most sense for your farm.

Contact our team

Contact a member of our expert team and find out how we can support you.

Get in touch

Talk to Philip O'Connor

Head of Farm Support052 7441772 farmsupport@ifac.ie Linkedin