Energy prices may drop later this year if the security situation in Eastern Europe "doesn't develop further", according to Minister for Finance Paschal Donohoe.
Households across the country have seen a hike in the cost of their electricity and gas bills in recent months.
On Tuesday morning. the Cabinet signed off on new legislation to allow a once-off €100 credit be given to domestic electricity customers.
Minister Donohoe said the hike in the cost of living is "a test and so difficult for so many".
He said on Today with Claire Byrne: "I fully appreciate given the nearly two years of deep anxiety and trauma that we went through as we endured the pandemic, that when we get to a better point, then facing new challenges for example the cost of living, it's such a test and so difficult for so many.
"But what we can do is now implement what we said we would do to deal with a challenge that we knew was coming.
"It is why, for example, we will be bringing in the energy reduction of €100. It's why we've made changes to key social welfare payments, the qualified child allowance, the energy allowance, the living alone allowance.
"This is why the Government is recommitting, going all in again, after the pandemic to deal with the needs we have in relation to housing.
"Because we appreciate that it is central to the challenges, the security, the anxiety that many face about their future."
When asked about families having to make choices between heating and food due to rising prices, the Minister said there are emergency payments available.
He said: "I know that the local social protection office, the local authorities, will do all they can to prevent somebody from having to make those choices.
"We do have emergency payments available to help our citizens who find themselves facing those set of choices, which of course I want to avoid.
"I would rather be in a position where there isn't a need for those emergency payments."
Minister Donohoe said energy prices may drop is the security situation in Ukraine doesn't get worse.
He added: "We do expect, moving through the year, assuming the security situation in Eastern Europe doesn't develop further, it is very possible that the energy pressures many are facing as we move through this year will decrease and will not as intense as they are."
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