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Minister for the Environment Eamon Ryan has said the “world has changed” following the Russian invasion of Ukraine.
The Government had previously said the Budget will be the next time new measures to help households with the cost of living will be introduced.
It came after it had announced a package of measures including a €200 credit for all household electricity bills.
However, last week Tánaiste Leo Varadkar said that that excise duties on fuel needs to be looked at to help households with rising energy prices.
Mr Ryan, speaking on Tuesday, said the “world has changed” with the invasion of Ukraine.
He said the Government now has to respond by providing housing and services for refugees and also reducing dependence on oil and dealing with the “inflationary impact of oil at $125-per-barrel”.
“It changes everything and we have to be responsive and quick.”
Mr Ryan said his team was examining excise on fuel in consultation with Minister for Finance Paschal Donohoe and Minister for Public Expenditure Michael McGrath.
He said the European Commission was working on a toolbox of measures Member States can take to respond to rising energy costs, and that it was important Irish actions were “in tandem” with this.
He warned that the measures “won’t cushion the full blow” of fuel increases.
“Everyone needs to realise that the scale of the increase in gas, oil and heating oil and coal prices is beyond precedent.
“It’s impossible to fully protect against the full effect of that.
“But we recognise we want to do more, we want to help consumers who will be hard hit and we’re working very closely with particularly Minister Donohoe obviously in agreeing the final details.”
All energy providers have raised prices over the past year with the ESB noting that the wholesale gas prices it faces had increased 16-fold over the past year based on Monday’s prices.
The cost of living has increased largely as a result of inflation, which the European Commission projects will be 4.6 per cent in Ireland this year, higher than the 3.5 per cent rate it forecasts for the eurozone as a whole.
Adding to this, the recent Russian invasion of Ukraine is also causing a spike in the cost of living worldwide.
The Government has already made some moves to help address the cost of living crisis, such as the €200 rebate off domestic electricity bills and the 20 per cent reduction in public transport fares until the end of the year.
However, it is understood that Government intends to go further than this, with measures of a sufficiently significant scale to require changes to the Finance Bill now working its way through the Oireachtas.
The Government on Monday announced that the €200 electricity credit will automatically be applied to Irish householders’ bills from April, and will continue over the following month or so depending on the billing cycle and electricity supplier.
Rationed
Meanwhile, home heating oil and commercial motor diesel have started being rationed across Ireland as oil companies seek to manage supplies in the face of an unprecedented surge in demand.
Many home heating oil suppliers have capped the amounts they will sell to domestic users to 500 litres – less than half the capacity of a standard oil tank.
The limits started being imposed in the middle of last week in the face of a spike in demand with many homeowners seeking to counter rising prices by buying more oil than they are likely to need as they head in to the summer months.
The cost of home heating oil has climbed higher and faster than other fossil fuels in Ireland with prices almost doubling from about €400 for 500 litres to close to €800 in just a matter of months.
Oil briefly hit its highest level since 2008 on Monday, while wholesale gas prices rose a further 18 per cent and have more than doubled in the past week.
The impact of the price rises was illustrated by a recent Red C poll commissioned by the Society of St Vincent de Paul (SVP), which found the number of people struggling financially has doubled from 9 per cent to 18 per cent since the start of the pandemic. Some 37 per cent of people say they have cut back on essential heating and electricity use, the poll found.