Ireland has introduced a €100 million (US$108 million) fuel subsidy scheme to support farmers, agricultural contractors, and fishers facing higher fuel costs. The measure, announced by the Department of Agriculture, Food and the Marine, will cover the period from March to the end of July, aligning with peak fuel usage.
The scheme follows an increase in Marked Gas Oil (MGO) prices from €0.97 (US$1.05) per litre in late February to €1.80 (US$1.94) per litre in recent weeks. Funding will be distributed at €20 million (US$21.60 million) per month and allocated based on verified fuel consumption in 2025.
Farmers and contractors will receive support equivalent to about €0.20 (US$0.22) per litre of MGO used. Approximately 120,000 farmers and 1,500 contractors are eligible, with payments managed through a single application process. Eligibility requires proof of active status, tax compliance, and recorded fuel usage, with verification checks in place. EU State Aid approval is required.
Up to €5 million (US$5.40 million) per month will be allocated to fishers and other sectors, including forestry and specialist horticulture. A separate support scheme for fishers is being developed.
"This Government recognises the exceptional pressure that rising fuel costs are placing on our farmers, contractors and fishers. This targeted and practical support package ensures that those most exposed to these increases will receive meaningful assistance at the most critical time of year," said Minister Martin Heydon.
"We have worked intensively with representative stakeholder groups in recent times, and I believe that this represents a fair and effective scheme based on actual fuel usage, taking account also of the vital work played by farm contractors in our farming systems. This approach ensures that funding is directed where it is needed most, helping to sustain essential food production and rural economic activity."
The Department of Agriculture, Food and the Marine has started preparations to implement the scheme, with further details to follow as rollout progresses.
For more information:
Irish Government
Tel: +353 (0) 57 867 4400
www.gov.ie
