Minister for Finance Simon Harris has said the Government will keep everything under review in terms of intervening in the economy as a result of high energy prices caused by the Iran War.
Speaking in Brussels ahead of a meeting of eurozone finance ministers, he said: "It's…very important that we make sure we make the right decisions. Something that could seem right this month could indeed turn out to be wrong next month. So we're monitoring this situation very, very carefully.
"This week, 50,000 more households will benefit from a decision we took in the last budget to expand the fuel allowance to all households in receipt of working family payment. That comes in this Thursday. It's backdated to January, and it's a payment above €380 for many, many households."
The comments come as home heating oil prices have reached €880 for a fill of 500 litres.
The prices were below €500 before the conflict in the Middle East began last weekend.
Meanwhile, the price of a litre of petrol has reached €1.90 at some services stations while the cost of diesel has reached €2.08 at some forecourts.
'Increase supply'
The Tánaiste welcomed discussions at G7 level on increasing the supply of oil into the global market.
"On a practical level, there's a focus on cost issues. The best way of addressing cost issues is to increase supply," he said.
He added: "If you look back in the past, and I'm not drawing direct comparisons, but to the time of the brutal Russian aggression and war in Ukraine, there was huge benefit in terms of engaging at a European level.
"In relation to this [war], we do need to get a better understanding in the days ahead as to the likely various economic impacts of a conflict that goes on for a few short weeks, which the Commission have today said could have a benign economic effect, versus one that goes on for a prolonged period of time.
"We need to be very careful that the economic medicine that may be administered is the correct prescription."
IRHA to 'shut down Dublin' unless Govt acts on fuel price hikes
The Irish Road Haulage Association said that fuel price increases "cannot be sustained" and a protest to "shut down Dublin" would take place before St Patrick's Day unless the Government took action.
IRHA President Ger Hyland called for the suspension of the Carbon Tax until the Middle East crisis ends.
Mr Hyland told RTÉ's Today with David McCullagh that for every euro spent on fuel, such as diesel, 65 cent is paid to the State in tax.
As a result, he said, the Government is the "real beneficiary" and is making "big profits" out of the crisis.
Mr Hyland added that there is an appetite among people, including those in the farming community, to join a demonstration by the hauliers.
"It's time the Government gave something back to the transport industry" as the rising cost is "going to put our members out of business," he said.
Government must intervene
The chairman of the Irish Farmers' Association Grain Committee has said the Government needed to intervene to ease the burden of rising fuel costs.
John Murphy said agricultural diesel was at around 96 cent a litre, but has now risen to between €1.35 to €1.40.
"We'll say in a tillage operation, it adds something between €15 and €20 an acre to the cost of our production."
Speaking on RTÉ’s Drivetime, he said that in a week, a tillage farmer could use between €3,000 and €4,000 worth of diesel, and this is a "significant lift" in costs, he said.
"If you burnt a thousand euro (of diesel) you’re going to be burning €1,300- €1,400 now."
He said the Government needed to take action: "Let it be the carbon tax freeze or whatever," he said.
'Not sustainable'
Vice President of the Coach Tourism and Transport Council of Ireland, Brendan Crowley, said "Monday to Monday" in a week they were paying 35/36 cent more per litre of fuel, which he said is not sustainable in the long-term.
Speaking on RTÉ's Drivetime, he said they wanted the Government to look at school contracts and bring in a fuel supplement, "which they did the last time we had a spike in fuel prices related to the Russian invasion of Ukraine".
In the absence of a cap in fuel prices, he said they must look at the different charges that are there and come up with solutions.
"This is a challenge for the country, it’s not just a challenge for bus operators."
Additional reporting: David Murphy
