A Fianna Fáil Private Members' motion calling for a review of fuel prices was defeated in the Dáil last night by 86 votes to 45.
The party had put forward a proposal to reduce the price of diesel and petrol by four cent a litre.
During last night's debate, Minister for Finance Michael Noonan said the loss of revenue the proposal would entail could not be sustained.
Minister of State at the Department of Agriculture Shane McEntee said thousands of jobs would be lost if predictions came to pass and fuel prices rose further.
Mr McEntee told the Dáil that it has to take a long-term view in its approach to fuel prices.
Independent TD Catherine Murphy said Ireland was at the mid-range when it came to excise duties on fuel.
Ms Murphy said it had to be acknowledged that the days of cheap fuel were gone.
She said that the lack of investment in public transport had led Ireland into a situation of over-reliance on fossil fuels and cars.
Labour's Kevin Humphreys said that Fianna Fáil was joining the populist mob in proposing policies with no way of paying for them.
Mr Humphreys said tax is not the problem; the price of oil is the problem.
In the first day of the debate, Fianna Fáil Transport Spokesman Timmy Dooley said commuters and businesses were suffering from the "unbearable" burden of rising fuel prices.
