Current excise reductions on petrol and diesel are set to remain in place until September 1.
Coalition leaders agreed to extend the reductions, with the previous rates then expected to be gradually restored over the following months.
The decision means motorists will avoid an immediate “cliff edge” increase at the pumps over the summer.
RTÉ reported that the extension of the existing excise cost reductions on petrol and diesel until September 1 will cost an additional €270 million.
