A reduction on the excise duty on fuel was "only ever visited as a temporary move", Minister of State at the Department of Transport James Lawless has said.
From midnight, the cost of petrol, diesel and green diesel will increase, marking the final of three phases of excise restoration.
It means petrol will increase by four cent per litre, diesel by three cent per litre and green diesel by one-and-a-half cent per litre.
Excise duty on fuel was cut by the Government in 2022 in response to the energy crisis that resulted from the Russian invasion of Ukraine.
Minister for Transport Eamon Ryan said that the increase was part of returning to a "normal budgetary process".
"The budget this Autumn is going to be significant in that we have to step back from emergency measures. We did incredible things in the last four years because of Covid, the cost-of-living crisis and the war in Ukraine.
"We've agreed in Government we need to get back to a normal budgetary process where we don't have one-off, we don't have core, non-core spending items and restoring whatever taxation base was there is part of that", he said.
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Speaking on RTÉ's Morning Ireland, Mr Lawless said that he did not see it being extended further.
"It was welcomed at the time. It was a relief to cost-of-living pressures, but it was only ever temporary and it's been extended now far longer than it was ever envisaged."
Speaking on the same programme, Freight Transport Association Ireland Chief Executive Aidan Flynn said the increase was expected but not wanted as it was "very significant" for businesses and their profits.
"If this increase in excise wasn't put back in now it would be put back in at another stage," he said. "But we're saying now is the time to review that and start looking to protect the competitiveness and business viability of all who are reliant on commercial fleets."
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He said that fuel accounted for 41% of the operational costs for a commercial heavy goods vehicle, and the 3c increase in diesel would add around €1,200 to the cost of each truck annually.
"If you have a small fleet of ten trucks for instance, a turnover of €1 million, you're operating on a margin profit margin of around 5%. That's reducing your profit from €50,000 a year down to €38,000 a year. It's very, very significant."
Call for reduction in alternative fuel prices
Mr Flynn said fuel prices increase very quickly but reduce much slower and that he hoped Minister for Finance Jack Chambers would consider the challenges faced by the sector.
He said there was ambition with association members to move to alternative fuels, but the excise on fuels like hydrotreated vegetable oil must be reduced to make it competitive.
"If the Government are serious about transitioning to alternative fuels and getting on that journey to zero emissions, now is the time to really look at the taxation and the supports available to help with that transition.
"But the reality is the Climate Action Plan 2024 sets out an ambition to have 3,500 low emitting heavy goods vehicles by 2030.
"We've around 200 at the minute, so it's going to be nigh-on impossible to be meeting those targets, but that's not to say the industry doesn't have ambition to change. We do."
Additional reporting Laura Hogan
