Cost of petrol, diesel up as some Budget measures come into effect
Some Budget measures announced in the Dáil yesterday came into effect at midnight.
Yesterday evening, TDs voted to reduce the VAT rate on the sale of completed apartments to 9% from 13.5%.
Also from midnight, around two-and-a-half cent has been added to the cost of a litre of petrol and diesel, while tobacco products have increased by 50c.
Debate on Budget 2026 will resume in the Dáil today.
Opposition parties will have the opportunity to question the Government on the Budget measures during Leaders’ Questions.
Meanwhile, Taoiseach Micheál Martin defended Budget 2026 from Opposition criticism, saying it was “not sustainable” to continue to give one-off measures, like electricity credits.
He maintained that the VAT reduction for the hospitality sector will prove to be a “significant fillip”, particularly for restaurants and cafes in rural areas where businesses is often seasonal.
VAT for food and catering businesses, as well as hairdressing services, will be reduced from 13.5% to 9% from 1 July 2026 – at a cost of €232m next year and €681m in a full year.
Speaking on RTÉ’s Nine O’Clock News, the Taoiseach said that amid the global economic uncertainty, the Coalition had to protect jobs, and he noted that wages were due to increase by 5% this year.
Minister for Finance Paschal Donohoe and Minister for Enterprise Jack Chambers will field questions from listeners on RTÉ’s Today with Claire Byrne from 10am this morning.
It comes as more detail emerged about Budget changes affecting students.
The income threshold to receive the third-level SUSI grant has been increased, and payments to students who live 30km or more from the college they are studying in will rise by between €200 to €430.
The Department of Further and Higher Education says this will benefit 30,000 students. There will be a pro-rata increase this academic year.
The SUSI postgraduate fee contribution grant will rise from €4,000 to €4,500.
Over 1,100 additional healthcare course places will be created.
€1 million is being made available for student mental health and healthy campus initiatives, and €3 million has been allocated to support students with disabilities. This includes €1 million for higher education and €2 million for further education and training colleges.
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