Tánaiste Simon Harris has confirmed the Government is finalising an "appropriate intervention" to address rising fuel costs.
He said this response will be focused on areas where there is the "most acute pressure"
Mr Harris said the Government's response will be finalised at the next Cabinet meeting, which is on Tuesday.
"This Government will act at this moment of great uncertainty," he said.
"While de-escalation is a priority for Ireland, and all EU member states, the Irish Government is actively preparing for a variety of economic scenarios," he said.
Mr Harris said that "fairness" must be at the centre of the response. The Tánaiste said the Government understands the pressures that families and businesses are under.
He said he has spoken with Taoiseach Micheál Martin and relevant ministers.
The Tánaiste said he strongly believes that any intervention should in "the first instance be for a short period of time".
He said this would enable the assistance to be applied quickly and to provide the Government with the time and the space to adapt the response "should this fast-moving and evolving situation require that".
Mr Harris also said any evidence of unfair pricing must be investigated and "acted upon".
"People need to have confidence that they are being treated fairly and that no one is engaging in opportunistic pricing at a time like this," he said.
He said Ireland and the European Union remain exposed to fossil fuel price shocks and that this reliance is not "sustainable" or "secure".
"The only lasting answer is to reduce that dependence."
Sinn Féin proposes legislation to temporarily reduce fuel taxes
Sinn Féin had earlier introduced emergency legislation in the Dáil to cut the cost of petrol, diesel and home heating oil.
However, the Tánaiste said the Government's decisions will be taken before that bill goes to a vote of the Dáil.
Sinn Féin TD Pearse Doherty proposed the Mineral Oil Tax (Emergency Cost of Living Reduction) Bill 2026, which would introduce temporary reductions in fuel taxes for a six-month emergency period.
Under the bill, excise duty on home heating oil would be removed entirely, excise on petrol and diesel would be reduced by 25c per litre and excise on green diesel used by farmers would also be cut.
Mr Doherty said the legislation is a "demand for emergency action" from the Government, and calls for taxes on diesel, petrol and home-heating oil to be cut.
He said the emergency legislation "can be passed today if the Government was willing".
He said the people around the country are clearly saying they "can't afford to refill their heating oil".
The price of home heating oil has "doubled" and people "are really, really afraid", said Mr Doherty.
"Older people are telling me that they are sitting in cold homes, afraid to turn on the heating," he added.
He accused the Government of "dithering" and delaying on action. "Decision time is now and there's no more hiding place for the Government," he said.
He said workers and families are already being "hammered" by the cost-of-living crisis.
Mr Doherty said it was "no wonder" that 320,000 people cannot pay their energy bills.
"People were already at breaking point," he said, adding that "now those same people are seeing energy prices skyrocket, all over again".
He said people are "demanding leadership" and "looking for a sign that the Government gets where they are at and what they are going through".
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Sinn Féin leader Mary Lou McDonald said Irish households are been hammered by skyrocketing fuel prices but said Fianna Fáil and Fine Gael are absent.
She told the Dáil that people are under massive pressure.
She said: "How bad do things have to get before your Government helps? How high do fuel prices have to go for you to act?"
She said people cannot wait as Fianna Fáil and Fine Gael "twiddle their thumbs" and said taxes must be cut on fuel and home heating oil and it can be done today.
The Social Democrats are calling for the immediate introduction of energy credits and excise reductions to tackle soaring energy prices.
Deputy leader Cian O'Callaghan said a €400 energy credit should be made available to 800,000 households.
He also called for immediate reductions in excise rates that he said should be applied to fuel so prices get back to where they were a few weeks ago.
"There is a need to act immediately on this and we are calling on the Government to take action," he said.
He said it is insulting for the Government to keep saying to people they are keeping the situation under review.
He said Government is getting increased revenue out of the situation and there needs to be action today.
