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To understand the tangled economics of the fuel protests, start with green diesel

21 0
11.04.2026

There has been a dangerous economic undercurrent to the fuel protests for the Government: anger over the cost of living and of doing business in Ireland. And an even more concerning political backdrop, as a self-appointed group effectively controls the movement of people and goods in many areas.

You would think that the unjustifiably disruptive actions of the protesters lost any wider public support as the week went on – and if this continues, large-scale job lay-offs across the economy will not be far behind. But in the early days, reactions were more mixed. Even some of those angry about the tactics had sympathy with the case being made.

One of the Government’s so-called problems in responding is familiar. It is flush with cash at the moment and has already given a lot of it in recent years in household and business supports. In strategic terms, the Cabinet’s initial decision to respond gradually to the hike in fuel costs was understandable and broadly correct – it wanted to have some idea what it was dealing with. Ministers hinted that the initial €250 million package, centred on cuts in excise duties and some welfare measures would, unless the situation quickly improved, be followed by more.

So why did the protesters move so quickly? There was certainly anger in some sectors. Hauliers are still under pressure, despite the measures in the first package. Meanwhile, the initial package contained just a 3 cent a litre cut in green diesel, the fuel used in the agricultural sector. This has angered farmers, and also agricultural contractors, who work with large machinery on farms at particular times of the year and are hugely reliant on fuel costs. Three cent wasn’t much of a contribution to their troubles. Hence the many tractors on the streets.

Multimillion-euro financial package will not be unveiled until nationwide fuel protests........

© The Irish Times