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Taoiseach Micheál Martin has warned that diesel prices rising above two euro per litre will become the “new norm”.

Mr Martin said the State-established energy expert group has advised that prices could rise and stay above the two-euro mark.

Speaking at the end of the Fianna Fáil think-in in Tullamore, Mr Martin described it as a “moving situation” caused by the war in the Middle East.

The threshold of two euro per litre sparked the nationwide fuel protests earlier this year.

Last month, the Government paused a planned increase to fuel excise duty and will instead implement a phased return of excise duty costs.

Mr Martin said: “They’re (expert group) making the point to our minister that, as far as they can see out on the horizon, this seems to be a new norm and that a lot of this is being priced in because of the volatility around the Middle East.

“I think that means we have to stand back a bit. We’ve got to engage with all of Government as to what’s the best way to map our way forward, to protect people as best we can, mindful also of the wider budgetary pressures.

“But I think it suffices to say, we’re looking at everything in the round and nothing ruled out, nothing ruled in.

“I don’t think it’s wise to put a particular price threshold on it because it’s a moving situation and we have other priorities as well that I’ve discussed.

“I’ve just discussed, you know, what are the measures we’re contemplating in the budget: income tax reductions, social protection measures, reducing childcare costs for families and a range of other measures.

“All of this has to be factored in. But we do have to look at it in terms of, rather than doing it from, you know, a two-month to two-month period, can we create greater certainty for people in the medium term?”