Fuel prices could be slashed from midnight tonight following an emergency Cabinet meeting which could see a cut in excise duties.

Petrol prices sky-rocketed to as high as €2 per litre following the Russian invasion of Ukraine which has added further pressure to energy costs.

Sources confirmed to Business Plus last night that the Cabinet will meet this morning to discuss cutting excise rates on fuel. If agreed, this will be discussed in the Dáil this afternoon, with price changes potentially taking effect at the pumps from midnight tonight.

The move could see petrol prices drop by 20c per litre, while diesel could drop by 15c per litre.

Environment Minister Eamon Ryan has warned however that any Government measures to reduce the cost of fuel will ‘not cushion the full blow’ of surging prices.

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It comes as the war in Ukraine rages with president Volodymyr Zelensky giving an impassioned speech to British MPs yesterday, telling them: "We will not give up and we will not lose."

Britain has followed the US and banned Russian oil imports as drivers in the UK started queuing for fuel after being hit by the steepest weekly hike in fuel prices in more than 18 years.

US president Joe Biden has decided to ban Russian oil imports, toughening the toll on Russia’s economy, while the European Union this week will commit to phasing out its reliance on Russia for energy needs as soon as possible.

But filling the void without crippling EU economies will likely take some time – natural gas from Russia accounts for one-third of Europe’s consumption of the fossil fuel.

One senior Government source said last night that the "Government felt it had to act. We are seeing unprecedented increases in fuel prices because of Russia’s invasion of Ukraine and there was an understanding that it’s putting significant financial pressure on ordinary families."

Business Plus understands that Finance Minister Paschal Donohoe, Minister Ryan and Public Expenditure Minister Michael McGrath will announce the Cabinet’s decision on the cut to excise duty on fuel this morning.

Mr Ryan said yesterday that while the Government was looking at measures to reduce prices, it may not be enough.

He said: "It won’t cushion the full blow. Everyone needs to realise that the scale of the increase in gas oil and heating oil and coal prices is beyond precedent. It’s impossible to fully protect against the full effect of that."

This came as Ukraine president Mr Zelensky gave an inspiring video address to British MPs, telling them: ‘We will fight to the end, at sea, in the air, we will continue fighting for our land, whatever the cost. We will fight in the forests, in the fields, on the shores and in the streets. We will fight on the banks of our rivers. We are looking for help from civilised countries, and we are thankful for this help."

Mr Zelensky is the target of Russian assassination squads, and his appearance via video link from Kyiv sparked a rare standing ovation from MPs. Some were in tears.

In other developments in the conflict:

÷ Poland announced it was donating its entire fleet of Russian-built Mig-29 jets to the US, which is expected to pass them on to the Ukrainian air force;

÷ McDonald’s said it was ‘temporarily’ closing its 850 restaurants in Russia;

÷ Shell announced it would stop buying Russian oil and close its 500 petrol stations in the country;

÷ China urged Putin to show "maximum restraint" amid signs Beijing is growing alarmed about the fallout from the war;

÷ Kyiv rejected a Kremlin offer to stop the war in return for ceding sovereignty of parts of Ukraine;

The Ukrainian president used his address to MPs by urging Western countries to continue supplying weapons and tighten sanctions on the Putin regime. But he also asked Nato to impose a no-fly zone – something the alliance has ruled out amid fears it could spark a world war.

Alexander Rodnyansky, an adviser to Mr Zelensky, yesterday rejected the Kremlin’s ‘peace’ terms out of hand, saying his country would never surrender occupied territories like Crimea.

He said Ukrainian forces are ‘winning’ the war and would never accept the "slicing and dicing" of their country. He told the BBC’s World at One show that Vladimir Putin’s offer was a "sign of weakness".

"The Russian side is losing," he added. "They are particularly interested now to press for time."