The excise duty on petrol will be cut by 20c and while diesel will be reduced by 15c and will remain in place until the end of August, the Irish Mirror understands.
Cabinet Ministers will sign off on the measure on Wednesday morning during an incorporeal meeting.
Finance Minister Paschal Donohoe will officially announce the cut.
Read more: Dublin fuel prices: Both petrol and diesel reach 207.8c in the capital
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.
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