Ireland Cuts Fuel Taxes and Provides €150 Benefit Amid Energy Crisis

The Republic of Ireland's government announced tax cuts on petrol and diesel, alongside a €150 benefit for approximately 470,000 low-income households, totaling nearly €250 million in support. This response follows economic concerns stemming from the Iran war, contrasting with an estimated €12 billion in support during the last energy crisis. Ireland's domestic economy grew by nearly 5% in 2025, with record-high employment. However, forecasts predict a slowdown in growth to below 3% for this year, with inflation expected to rise from 2.1% in 2025 to about 3%. Prolonged conflict could further reduce growth to around 2% and inflation above 4%.