Ireland will release 1.6 million barrels of oil from its strategic reserves on the request of the International Energy Agency (IEA).
In total, IEA member countries will release 400 million barrels – one third of total reserves – to stabilise markets and help ease concerns about a shortage of supply in Asia.
Oil and gas prices spiked earlier this week as a result of the war in the Middle East.
Iran has blocked the Strait of Hormuz – a key shipping route – in response to bombing by the US and Israel.
The European Commission has repeatedly assured that European energy supplies are not at risk, but prices have risen dramatically.
“The ten days of war have already cost European taxpayers an additional €3 billion in fossil fuel imports”, European Commission President, Ursula von der Leyen, told MEPs in the European Parliament this morning.
“That is the price of our dependence”, she said.
The IEA’s Executive Director, Dr Fatih Birol, said the release of 400 million barrels was its biggest ever emergency measure.
“This is a major action aiming to alleviate the immediate actions of the disruption in markets.
But, to be clear, the most important thing for a return to stable flows of oil and gas is the resumption of transit through the Strait of Hormuz.”
Tánaiste Simon Harris TD welcomed the release of emergency reserves which he said would “help restore confidence”.
“This action is intended to increase supply and underpin the market in the weeks ahead. It will also help provide confidence and reduce market volatility.
Ireland will play its part in this policy response also.”
Ireland holds 90 days’ supply of stocks of oil, in line with its international commitments, the government confirmed.
Ireland’s contribution to an IEA would be 1.6 million barrels. “That level of contribution equates to approximately 10.5 days of supply”, according to the Department of Climate, Energy and the Environment.
Minister for Climate, Energy and the Environment Darragh O’Brien TD said:
“Participation in this IEA collective action reflects our shared commitment to maintaining stability in global energy markets and protecting consumers and businesses from the worst effects of price volatility. My officials continue to liaise closely with our national and international partners to ensure a coordinated, timely and appropriate response.”