Plans to re-introduce excise duty on fuel should be postponed, the Irish Farmers’ Association (IFA) farm business chair Bill O’Keeffe has said.

In June, the Government announced excise duty on fuels would be re-introduced from 1 September, with a gradual restoration of all levies by 1 December.

While fuel costs, including green diesel, had declined in recent months, they increased throughout July and early August.

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O’Keeffe warned that any move by the Government resulting in an increase in the cost of fuel at the current high price levels, “will put further pressure on farm families and farm business who have struggled through the past number of months with rising costs”.

‘Severe pressure’

The IFA has said that the planned increase comes at a time when costs on farms, including fuel costs, remain persistently high, while farmgate returns across key sectors have weakened significantly.

“Our dairy, beef, tillage, potato and vegetable farmers are all under severe pressure from reduced margins in 2026 and combined with poor grass growth and tillage crop performance this summer, it would be reckless for the Government to drive ahead with these plans to place additional cost on fuel," O'Keeffe said.

“Farmers are price takers and cannot pass on rising input costs.

“Reintroducing higher excise rates on fuel at this time could be the tipping point for many farmers to enter negative margin territory, undermining the viability of many family farms."

The organisation added that any unallocated funds set aside for the Fuel Income Support Scheme must be retained in agricultural sector and be directed towards farmers to alleviate the ongoing energy costs.