Taoiseach Micheál Martin has said the Government needed to maintain the focus on renewable energy in order to ensure energy security and cheaper prices.
The Taoiseach held an hour-long meeting with Spanish Prime Minister Pedro Sánchez at his La Moncloa residence in Madrid, where both men discussed the situation in the Middle East - in particular the deepening Israeli involvement in Lebanon - as well as Ukraine, EU-US trade, and the priorities of the Irish presidency of the EU in the second half of the year.
Speaking in Madrid, Mr Martin said: "We acknowledge people are under a lot of pressure with petrol pumps and so forth, and the cost of energy is the big issue in Ireland and across Europe."
Mr Martin told reporters: "It's a very fluid situation. We've seen the price go up and go down very quickly. So we want to avoid a knee-jerk reaction. We want to review it in the context of whatever particular measures are sustainable."
He said some 50,000 people would benefit from the working family payment now being included in the free fuel allowance, with the payment being backdated to January.
Both governments are due to sign a memorandum of understanding on a potential interconnector between Spain and Ireland.
During the meeting with Mr Martin, Mr Sánchez is understood to have recalled his time learning English in Dublin as a teenager.
Mr Sánchez has emerged as the EU's most vocal critic of the bombing campaign by the US and Israel on Iran, calling it a "violation of international law".
He has come under pressure from US President Donald Trump as a result, who threatened to "cut off all trade with Spain".
The Irish Government said that while the US-Israeli military offensive on Iran took place without a UN mandate, it stopped short of saying that it contravened international law.
Mr Martin's meeting with Mr Sánchez comes a week before he meets Mr Trump in the Oval Office on St Patrick's Day.
Asked if he would adopt Mr Sanchez’s more robust criticism of the Trump administration, the Taoiseach said both leaders had discussed what he called the "behaviour" of the Iranian regime in recent decades, including its sponsorship of terror organisations such as Hezbollah, Hamas and the Houthis in Yemen.
Asked what message he would bring to the Oval Office next week, the Taoiseach said: "We will have an exchange of views on current issues, and our desire that we would have a de-escalation and that we would have a cessation of hostilities, and that we can get a resolution to the outstanding issues.
"And it is very, very challenging, and has been very, very challenging if you look at the region in the last number of decades, endeavouring to resolve the Israeli-Palestinian question, to try and get a two-state solution."
After the encounter, the Taoiseach held a video conference with some 21 EU leaders on the energy issue ahead of next week’s summit of EU leaders.
He said the European Commission will bring forward proposals on energy costs, changes to the European grid, renewables and the Emissions Trading System (ETS) ahead of the summit.
Mr Martin's trip to Madrid is part of several to EU capitals ahead of Ireland taking up the EU presidency for six months from July.
"The success of our presidency will rely on the goodwill of our EU partners, and therefore it is important that I hear from my fellow EU leaders on what their priorities and concerns are on the range of issues that Ireland will be seeking to progress during the six months of our presidency," Mr Martin said ahead of today's meeting.
"Improving Europe's competitiveness, enhancing our security, and promoting and protecting our shared values will be the priority issues for our presidency.
"Across these areas, there are many detailed and complex files which we will be tasked with advancing, not least the EU's next multiannual budget.
"I will also discuss global issues with Prime Minister Sánchez, including the serious situations in the Middle East and Ukraine.
"Ireland and Spain share excellent bilateral relations, built on strong historical links and close cultural affinity, and I look forward to discussing how we can work together to further strengthen cooperation on trade, investment, energy, education, research and culture."
Additional reporting: PA
