A phased restoration of fuel excise duty will not proceed in September, following concerns raised by opposition and government backbench TDs.
The excise duty cuts were part of a €750 million support package introduced in response to national fuel protests that disrupted the country in April.
The phased removal of these supports was scheduled to begin on September 1st, which would have added 9 cent to a litre of petrol and 10 cent to a litre of diesel.
However, the government has now confirmed that the planned phasing out of supports on September 1st and October 1st will not take place.
In a statement, the Coalition said: "In June the Government announced an extension of the temporary reductions to fuel excise and the National Oil Reserves Agency Levy (NORA) and to avoid any cliff edge removal of supports, it set out a pathway to gradually restore rates to pre-reduction levels, starting from September 1.
"However, it is clear that in the intervening period there has been a change in the global situation and as a consequence the cost of petrol and diesel for consumers.
"The Taoiseach, Tánaiste and Minister of State Seán Canney have kept in close contact in recent days and weeks and this morning agreed that the planned increases on September 1 and October 1 will not now go ahead.
"The Government will agree the next steps next week.
"Ultimately the greatest economic intervention we can see is de-escalation in the Middle East - and that is still the case.
"We will continue to be agile and rule nothing out.
"Work is also ongoing in relation to the Budget on October 6. The Government has been clear there will be decisive interventions in the Budget that will be framed around assisting people with the cost of living including to reward work, reduce costs, and protect the economy."
The Dáil is currently due to reconvene on Wednesday, September 16th. A recall of the Dáil is likely, with next Friday considered a potential date.
Sinn Féin leader Mary Lou McDonald had written to Taoiseach Micheál Martin to request an early return to address the issue of fuel supports.
A number of backbench Government TDs have also expressed their opposition to the removal of supports.
Wicklow-Wexford TD Brian Brennan told BreakingNews.ie that the expected phasing out of fuel measures "should be stalled".
"Since this decision was taken fuel prices are continuing to rise. There is no sight of a resolution in the Middle East, therefore we must re-evaluate our position as a Government on fuel prices."
Brennan said he has had "numerous conversations" with Tánaiste Simon Harris on the matter, including one late on Monday night.
He added: "I am confident he is fully aware of the consequences for so many sectors within our economy especially agriculture and road haulage. And in the Tánaiste's words, 'everything is still on the table in relation to fuel supports'."
Brennan said many people in his constituency would be directly affected by the phasing out of the temporary supports.
"In my opinion the Government made their decision as there seemed to be stability in relation to oil prices and the geopolitical stability worldwide. But we are all aware today that world oil prices continue to rise and we are all well briefed on the volatility of the situation in the Middle East... so now is not the time to start dropping these supports."
In a statement, Fianna Fáil MEP Barry Cowen said the decision had not been 'forced'.
Cowen said: "I have just received welcome confirmation from Government that the planned fuel levy increases will not go ahead next month.
"There’ll be some rushing to claim credit for ‘forcing’ this outcome, but the reality couldn’t be more different.
"Good government means listening to people, responding to concerns and being willing to adapt when circumstances demand it.
"That’s what has happened here. Credit where it’s due."
