Fuel prices on forecourts have started to drop after the Government agreed to cut taxes on both diesel and petrol.
The move sees the excise duty on a litre of diesel reduce by 20 cent, with a 15 cent drop for petrol until the end of May.
Last night, the Dáil voted to approve the measures, which are part of a €250 million Government support package to offset soaring fuel prices due to the escalating conflict in the Middle East.
In addition, a two cent per litre levy on both fuels that goes to the National Oil Reserves Agency (NORA) is expected to be paused for two months from the start of April.
Before the Iran war started, pump prices for diesel and petrol were averaging around €1.70 per litre, but soaring oil prices have seen the cost of a litre of diesel hit €2.30 on many forecourts in recent days, with petrol hovering around €2 per litre.
Watch: Some fuel price drops as excise duty cuts in effect
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The reductions kicked in at midnight, with fuel leaving a depot from then subject to the lower excise rates.
This morning diesel prices on many forecourts have fallen to around €2.09 per litre, with petrol down to around €1.85 per litre.
However, many service stations might be still selling existing stock - on which a higher excise duty was paid - meaning motorists will not be paying cheaper fuel prices at some pumps until old supplies wash through.
Though some forecourt retailers are reportedly dropping their pump prices before they get fresh deliveries to avoid criticism and allegations of price gouging.
The Irish Petrol Retailers Association (IPRA), which claims its members have been getting abuse over pricing, said fuel retailers have bought fuel over the past few days at the higher excise rate and that they will sell this stock at a loss.
The IPRA is asking the Government to issue a rebate of the excise duty on this fuel.
Apart from diesel and petrol, the NORA levy is also applied to home-heating oil and its suspension will reduce the price of that fuel by two cent a litre.
The Government measures also include a VAT-inclusive three cent per litre cut in excise on green diesel, and a temporary increase in the maximum rebate allowable under the Diesel Rebate Scheme (administered by Revenue) to 12 cent per litre (from 7.5 cent per litre) until 30 June.
Heating payments to social welfare recipients will be extended for four weeks, and there will be enhancements to a rebate programme for hauliers.
The overall package, which will also include targeted energy supports for pensioners, carers and people with disabilities, is set to cost €235m.
118 TDs backed the Financial Resolution with 39 opposing it.
Taoiseach Micheál Martin said the measures are "targeted and temporary" and will be reviewed subject to market developments.
Mr Martin was asked about the fact that motorists will still have to pay a lot more for their fuel even after the excise cuts are applied.
"There are limits to what governments can do in response to a crisis of this kind and we want to ensure what we do is sustainable," he said.
He said it is not known how long the war will last and the turbulence that goes with it in the energy markets.
Price reductions will take time to filter through
Martin McSorley, a member of the Irish Petrol Retailers Association and owner of eight service stations in the south-east, said his businesses have had "a lot of comments from customers and we've had some abuse online on social media".
He said even setting up for the Six-One interview on RTÉ One, that was broadcast live from one his forecourts, people have been "shouting at us and different things".
Mr McSorley said: "Customers have an expectation that it [price cuts] should happen instantly, but it just doesn't work that way.
The cuts have been applied at only two of the filling stations since the reduction came into effect.
"As of midnight last night, we had 156,000 litres of stock in the ground which we paid a much higher price for.
"So, in some of our sites we won't be able to pass that on until that stock level lowers," he said.
"And then we also have an issue where customers are expecting a drop of 20 cent, but we were not as high a price at midnight last night as some sites would have been.
"So, our drop today on this site was only 10 cent because we were only at €2.19 for a litre of diesel, so that 10 cent is not what customers were expecting.
"So, there's a little bit of abuse from that as well," he said.
Read more: How the Govt's excise cuts will impact the cost of fuels
