The Government has been accused of not doing enough to help those struggling to deal with rising energy costs as a result of the war in Iran.
The measures agreed by Cabinet this morning will see excise duty on diesel cut by 20 cent and by 15 cent on petrol until the end of May, while the Fuel Allowance will be extended by four weeks.
The Social Democrats' deputy leader Cian O'Callaghan told the Dáil that families at breaking point are now being forced to choose between eating and heating.
The Sinn Féin leader Mary Lou McDonald said the Government's half-measures will not cut it and households need meaningful relief.
The Labour leader Ivana Bacik also stated that the Government's intervention did not go far enough.
However, the Taoiseach insisted the approach was a balanced one and said the Government has to hold something back for now - because it does not know what is around the corner amid such global uncertainty.
Diesel to fall by 22 cents, petrol to fall by 17 cents
The measures announced this morning will see the price of diesel fall by a total of 22 cent a litre, and petrol by a total of 17 cent a litre.
The reduction includes a VAT-inclusive excise duty cut per litre of 20 cent on diesel and 15 cent on petrol, which will come into effect at midnight tonight and last until the end of May.
In addition, a two-cent per litre National Oil Reserves Agency (NORA) levy on petrol and diesel will be paused for two months, however, this will require additional legislation.
The NORA levy is also applied to home-heating oil, and 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, which is 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.
The excise measures will take effect from midnight tonight subject to a financial resolution being passed in the Dáil.
Government's actions have to be sustainable - Martin
Taoiseach Micheál Martin said the measures are "targeted and temporary" and will be reviewed subject to market developments.
The Taoiseach 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.
Read more: How the Govt's excise cuts will impact the cost of fuels
He said it is not known how long the war will last and the turbulence that goes with it in the energy markets.
"We are never going to be in a position, where we will, as a Government, be able to compensate everyone for the damaging impacts of the war on the energy markets, but what we can do is try and ease the pressure," he said.
The Taoiseach said that Government party leaders decided on a two-month period for the cut to excise duty on diesel and petrol on the foot of advice heard at the European Council.
"Governments are ultimately limited in terms of what they can do over a prolonged period in respect of a crisis such as this arising from a war," Mr Martin said.
He added: "We urge that this conflict and war ends as quickly as possible as that's the most effective way to get the world economy back on some equilibrium.
"Temporary, targeted [measures] are the key recommendations globally as to how to deal with a situation as this and that's what we're doing here today."
Tánaiste expects excise cut to be passed on to consumers quickly
Speaking at Government Buildings, the Tánaiste and Minister for Finance said he expects the excise cut to be passed on quickly to consumers by fuel sellers.
"It's very clear here. People were very quick to up the prices, they need to put them down as quickly," said Simon Harris.
He said he does "logically accept" that there may be a lag with passing on the cuts with small, remote petrol stations compared to large urban ones, but said he has heard that the industry expects "the large majority to see the benefit passed on within a few hours".
Mr Harris said everyone has to act in good faith on this and the Competition and Consumer Protection Commission has a role to play in monitoring the situation.
Speaking before a meeting of the Cabinet, Mr Harris said the Government wanted to be nimble in its response and introducing six-month measures would be "foolish".
He added that the cut to excise duty on petrol and diesel until the end of May was to "recognise that Mystic Meg and her descendants can't predict where the world's economy is going to be at the end of May".
'Series of half measures'
Sinn Féin accused the Government of abandoning those dependent on home heating oil and said it would seek to amend the financial resolution in the Dáil.
Speaking outside Leinster House, Sinn Féin Spokesperson on Finance Pearse Doherty described the Government's proposals as a "series of half measures" that is "not acceptable".
Mr Doherty called for an excise cut to the maximum amount in diesel, as well as the removal of excise from home heating oil, the fuel allowance to be extended by 13 weeks and to bring forward energy credits.
He said: "That's the type of comprehensive package that we should be seeing from Government.
"But unfortunately, we have half measures and a Government that was really dragged to this place who didn't want to support people, but have no problem supporting and handing hundreds of millions of euros of tax cuts to developers, to banks that are making billions of profits and pay less than 1% of profits.
"Yet, at the same time, people have been left for the last four weeks high and dry, and now they come forward on Tuesday with a series of half measures, and it's not acceptable."
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Mr O'Callaghan of the Social Democrats expressed concern that the Government response to the energy crisis is going to be wholly inadequate.
Deputy O'Callaghan said: "While a cut to excise duty, to provide relief at the pumps, is welcome, there is so much more the Government should be doing to target supports at those who are struggling the most.
"Even before this latest crisis erupted, 320,000 households were in arrears on their energy bills. That is hundreds and thousands of people all over the country who simply can't meet soaring energy prices.
"For months now, the Social Democrats have been asking the Government to introduce a targeted €400 energy credit for the 800,000 households who are struggling most, based on household income. This measure has been fully costed, at €362 million, and would provide real support to people who need it most."
Labour called for a cut of 10% on public transport fares and said it wants more people to be able to work from home.
Labour Party Spokesperson on Finance Ged Nash said his party supports the measures being introduced by the Government, adding that "the response needs to be a mix of financial measures for hard-pressed commuters, some for workers and small businesses across the country, but also a policy intervention".
He said that "we need to return now to a real focus on enabling people to work from home to ensure that we get the benefits of remote work and that workers aren't overly penalised by having to get into their cars or use expensive public transport on a daily basis."
Additional reporting: Joe Mag Raollaigh and Harry Manning
