The excise duty will be cut on petrol by 20c and on diesel by 15c and this cut will remain in place until the end of August, the Irish Mirror understands.
Cabinet Ministers will hold an incorporeal meeting to sign off on the measure on Wednesday morning and it will be announced by Finance Minister Paschal Donohoe.
There is a technical EU limit that is preventing the Government from cutting excise on diesel any further, according to senior sources.
The Government source confirmed that the proposal going to Ministers this morning is a 20c excise cut on petrol and 15c on diesel.
And the Government “is committing to this cut until the end of August,” the source confirmed.
The changes would then take effect from midnight if, as expected, the Dáil passes it.
However, it was reported that petrol stations across the country had begun hiking up the price of fuel while news emerged of the cut to excise duty.
A number of forecourts across Ireland were selling petrol at more than €2 a litre on Tuesday.
