Government rolls out diesel subsidies and fuel aid to cut living costs
The government has unveiled a series of financial measures to ease costs for consumers, businesses and key industries. The plan includes diesel subsidies, expanded fuel support, and targeted aid for farmers, alongside new tax adjustments to fund the changes.
Starting in April, diesel prices will drop by roughly 20 cents per litre for drivers and businesses. The state will cover 16 cents of this reduction through subsidies in the distribution network, while the remaining cut comes from lowering the Special Consumption Tax (SCT) to its minimum legal level. Officials expect the impact on gasoline prices to remain minor.
Farmers will receive a 15% subsidy on fertiliser purchases for April and May, based on invoice values. The move aims to reduce production costs in the primary sector during a critical planting season. The Fuel Pass scheme will also return with wider eligibility and higher income thresholds. Beneficiaries will now receive an average subsidy of 36 cents per litre, up from previous levels. Coverage has expanded to include more households and professions reliant on fuel. To offset the costs, online casino profits will face new tax rates, generating an estimated €100 million annually. An additional €56 million will go towards capping ferry fares, preventing expected price surges for island routes.
The combined measures target transport, agriculture and household budgets, with funding secured through revised tax policies. The diesel subsidy and Fuel Pass changes take effect in April, while ferry fare controls and fertiliser support will roll out in the coming weeks.
