It comes amid fuel prices skyrocketing across the country.
The government has signed off on measures to reduce the cost of excise on fuel by a third.
It will lead to a 15 cent a litre drop in the price of diesel and 20 cent on petrol.
Public pressure had mounted on the government to make a change sooner rather than later.
Groups such as taxis and haulage companies said they were adversely affected by the prices.
Donohoe confirms excise cut, says filling a 60 litre tank will reduce by an average of €12 for petrol and €9 for diesel pic.twitter.com/rjZQNJ33Nc
— Rónán Duffy (@ronanduffy_) March 9, 2022
However, opposition TDs have said the measures don't go far enough - as there are no measures for home heating oil.
Finance Minister Paschal Donohoe says he tried to strike a balance between helping people and affordability for the State.
"These taxes help to pay for everything. From the wages of our teachers, our nurses, and our gardaí."
"To the needs that we have with regard to roads, to schools and to social housing."
"The reductions are expected to reduce the cost of a fill of a 60-litre tank by 12 euro for petrol and by 9 euro for diesel."
