Fuel measures to strike balance between acting now and 'keeping powder dry' - Tánaiste

Ottoline Spearman

The Tánaiste has said that measures to tackle the rising costs of oil and gas would be for a "short, defined period", allowing the Government to remain "nimble and flexible".

In a statement, Harris said that this would allow the option to revise or adjust in light of an ever-changing conflict.

“The interventions... strike an appropriate balance between providing help now and keeping some of our powder dry - nobody knows what the situation will be in a month from now; so we must remain nimble and flexible in our response," he said.

The measures are expected to be announced on Tuesday, with the Government coming under increasing pressure to help offset rising fuel costs for consumers, sparked by the Middle East war.

Diesel prices have skyrocketed by around 10.5 per cent since February, with the average price increasing by 18 cents from €1.72 in February.

Petrol prices have also increased by 4.6 per cent to €1.81 per litre on average in March, according to AA Ireland.

In some places, prices have been reported at over €2 a litre.

Speaking to reporters on Friday, Harris said that measures would be short-term and targeted in three areas: petrol and diesel prices; helping those most at risk of fuel poverty and assisting “core parts” of the economy like the haulage sector.

Offering reassurance on Saturday, Harris said that Ireland is "approaching this global economic challenge from a position of relative strength" as the country is running with a "significant budgetary surplus", which he said allows the "fiscal capacity" to respond.

“In the past, we have often been criticised for running these budget surpluses and asked why we do not spend all available resources," he said.

"The current situation highlights why it is so important to run budget surpluses in 'good times' - this common-sense approach to budgetary policy allows us to build up fiscal buffers and gives us the capacity to intervene when an economic shock arises."

He also said that he was "very conscious" that people are feeling "financial pressure", also recognising the impact of "financial anxiety".

Harris said that he expects to present a macroeconomic analysis "shortly" which will cover a range of scenarios as to how the conflict could play out.

Harris also admitted that the economy would continue to grow, "albeit at a slower pace" than previously envisaged.

He underlined the importance of working with European counterparts, including at a meeting of fellow EU finance ministers next week, and stressed that the conflict is a "sharp reminder" of the importance of moving toward energy independence.

"I want to stress that Ireland, and the Irish economy, will get through this - I have no doubt about that."