Ireland is Struggling with Fuel Affordability in Light of Strait of Hormuz Disruptions and Taxation

    

      While the U.S. is fairly well insulated from suffering huge cost increases resulting from the disruption of oil, refined fuel, fertilizer, and other commerce due to the situation with the Strait of Hormuz, countries in Africa, Asia, and Europe have been strongly affected. Fuel cost increases in Europe are concerning. In Ireland, fuel costs have skyrocketed. Fuel oil has increased by 67.5 %. Fuel oil is used by about 25% of homes in the country for heat. If this had happened in mid-winter, the situation could have been far worse.  

“A 1,000-litre oil tank now costs €1,740 to fill, almost double the €935 price in early February and the highest on record.”

     That is quite expensive. It is the highest cost on record for fuel oil in the country. 

     Inflation is also rising in the country, as is the price of diesel (up 18.1%) and gasoline, or petrol (up 7.7%).

     One thing people are complaining about is the high government taxes on fuel, which means the government is profiting from the fuel price increases.

     On April 8, a fuel price protest began. Protestors are calling for the carbon tax on green diesel to be removed and the price of fuel to be capped.

John Dallon, a protest leader in Dublin, told the outlet: “Government is going to have to listen because this protest is escalating. The people of Ireland, of the island of Ireland, have had enough, and what I’m hearing all around here is we need to bring the government down or at least bring them to their senses, and we need to take some of that power back off of government.”

     Apparently, protests have caused Ireland’s only oil refinery to close due to trucks blocking roads in support of the protest. Gas pumps are running dry, and transportation in the country has been hampered. Over 500 of the country’s 1500 gas stations have run out of gas.

“Government officials, who had already introduced measures to ease the burden of price rises, have been baffled over the rationale behind the protests because the global price spike is due to the war in the Middle East that has restricted oil exports.”

“Irish Prime Minister Micheál Martin said on Friday that the country was on the brink of turning tankers away at ports during a global shortage and was in jeopardy of losing its oil supply.”

"It is unconscionable, it's illogical, it is difficult to comprehend," Martin told national broadcaster RTE.

     Irish police are arresting protestors and removing the roadblocks, but it sounds like the government needs to do something to relieve the tension. Talks are ongoing. According to AP:

“Two weeks ago, the government approved a range of measures to cut fuel prices, including a temporary reduction in excise taxes on motor fuels, expansion of a rebate for truckers and bus operators that use diesel fuel, and the extension of a program that helps low-income people with their heating costs.”

“But those reductions were quickly overtaken as international prices continued to rise.”

     RTE reports that the Irish government has extended its assistance:

“The big move by Government is the further 10c cut in excise on both petrol and diesel to the end of July.”

“There will also be a new reduction of 2.4c on green diesel.”

“The carbon tax increases have been delayed until the Budget in October.”

“The size of the package announced is around €505 million - and it comes on top of €250 million worth of measures announced almost three weeks ago.”

     Further measures have been announced for truckers and farmers, some backdated to March 1.

     Social Democrats leader Holly Cairns noted the effects of inflation in the country:

"These protests are a manifestation of how desperate many people feel as costs continue to soar - not just for fuel, but for everything in this country," she said.

"People are increasingly struggling to pay for the basics - food, energy and housing - and the Government is just not listening to them. They are out of touch and out of ideas.”

     While some in the country have called for increased electrification and an acceleration of the transition to renewable energy, that is likely not going to be a cheaper alternative. However, it could insulate the country a bit from future geopolitical fossil fuel price shocks.

 

 

References:

 

'People just can't afford it' – Heating oil at its highest price ever. Christian McCashin. Extra.ie. April 10, 2026. 'People just can't afford it' – Heating oil at its highest price ever

Irish protesters threaten to "close the country down" as roads blockaded. Kate Plummer. Newsweek. April 10, 2026. Irish protesters threaten to "close the country down" as roads blockaded

Fuel protests in Ireland continue as pumps run dry, prices rise amid war in Middle East: Police arrested protesters on Saturday calling for Ireland's only oil refinery to reopen. AP. April 12, 2026. Fuel protests in Ireland continue as pumps run dry, prices rise amid war in Middle East | CBC News

New fuel supports announced after days of protests. Maggie Doyle  Mícheál Lehane. RTE. Updated April 13, 2026. New fuel supports announced after days of protests