A €100 million “comprehensive” fuel subsidy plan has been announced to help farmers, agricultural contractors and fishermen facing “unprecedented increases” in fuel costs.
Agriculture, Food and Marine Minister Martin Haydon confirmed the payments will cover the months of March to the end of July which also coincides with the peak fuel season for field work on farms.
The package comes in response to the sharp rise in prices of gasoil, known as green diesel, which has nearly doubled since February due to ongoing geopolitical instability in the Middle East.
The minister said prices had risen from €0.97 per liter in late February to €1.80 per liter in recent weeks, putting severe financial pressure on key sectors of Ireland’s food production economy.
Fuel use
The scheme will provide €20 million per month in support, with funding directly linked to last year’s fuel use to ensure those most affected by fuel price increases receive the most help.
Farmers and agricultural contractors will benefit from a subsidy rate equivalent to about 20 cents per liter of specified gas oil used based on verified fuel consumption in 2025.
The funding will be distributed proportionately – a point “strongly emphasized in ongoing engagements with representative farmer groups and farm contractors”, according to the Minister.
Qualified farmers
Nearly 120,000 farmers and 1,500 full-time agricultural contractors will be eligible to apply for support.
Payments will be made through a single application process, with funding allocated based on last year’s fuel use.
Eligibility will require applicants to prove active farming or contracting status, tax compliance, and verifiable fuel use.
A system of checks and inspections will be implemented to ensure accountability. EU state aid cover will also be essential.
Up to €5 million per month will be allocated to support fishermen and other affected sectors such as forestry and specialized horticulture.
Fishermen face severe challenges, exacerbated by high fuel costs.
A dedicated scheme for fishermen will be developed, taking into account EU government aid requirements.
‘Exceptional pressure’
Minister Haydon said the government “recognizes the extraordinary pressure that rising fuel costs are placing on farmers, contractors and fishermen.”
“This targeted and practical support package ensures that those most vulnerable to these increases get meaningful help at the most crucial time of year,” he said.
“We have been working extensively with representative groups of stakeholders recently, and I believe this represents a fair and effective plan based on actual fuel use, while also taking into account the vital work that farm contractors play in our agricultural systems.
“This approach ensures that financing is directed where it is needed most, helping to sustain basic food production and rural economic activity.”
She added that the Ministry of Agriculture, Food and the Marine had begun “intensive preparations” to implement the scheme as quickly as possible.
Given the size and complexity, timelines will be “carefully managed to ensure effective implementation.”
The ministry said stakeholders will be kept informed when the scheme is finalized and published.
Fuel supports
Taoiseach Micheal Martin has certain A number of other means of support.
Speaking tonight (Sunday 12 April), he announced that the increase in carbon tax due to come into force next month has been postponed until the Budget in October.
He also said that the government is now extending temporary measures to reduce customs duties on petrol, diesel and premium gas oil from the end of May to the end of July.
The government intends to introduce an additional reduction of 10 cents in customs duties on gasoline and diesel, and an additional reduction of 2.4 cents on gas oil, as of midnight on Tuesday, subject to parliamentary approval.
The total value of the package announced today is €505 million.
