Households are already stocking up on home heating oil for winter as fears grow that prices will rise further as the Government cautioned that fuel rationing could be introduced in a worse case scenario.
Several heating oil suppliers have now dropped their prices by hundreds of euros to €1,279 for 1,000 litres, and €645 for 500 litres.
But the prices are still up 115.4% in a year, in what is the greatest single dent in a household's budget as inflation soars, with thousands of euros added to energy, fuel and grocery bills.
One heating oil supplier said they had seen an increase of 20% in sales this week, as people rushed to buy fuel at cheaper prices - about a month before demand traditionally begins to rise in September.
A spokesman for Donegal's A&N Fuels said its customers had referenced the Government's plans for the possibility of fuel rationing and were stocking up now in case supplies run low.
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Mark Coffey, owner & managing director of Euro Oil in Dublin, said: "Normally in the summer season the kerosene sales would stop but there has been a constant flow of kerosene for home heating oil.
"People are watching it and are aware of it so they are ringing in and they're watching online. Once they see a drop in price, which it has done in the last month, they purchase it. Oil dropped at least six cent last night. That's a huge decrease in one night."
Other home heating oil suppliers, including Whoriskey Heating Oil in Donegal, said they had dropped their prices in order to remain competitive.
Fuels For Ireland chief Kevin McPartlan said people might be rushing to buy now because prices have been so unstable since the Russian invasion of Ukraine.
He added: "Because people have seen prices fluctuate wildly in the last five months, when they see prices dropping, they say 'Oh, let's buy it now'.
"It may be that they have topped up at a different time and now find themselves at a lower level. It's changing buying patterns."
Mr McPartlan said heating oil prices were always more sensitive to price shocks, meaning fuel price drops would be more dramatic.
He added: "Fuel price fluctuations are always most keenly felt in home heating oil. The reason for that is because the tax element of petrol and diesel for road transport is so high that it cushions the fluctuations.
"When Russia invaded Ukraine, the increase in the price of oil heating was very dramatic. It doubled really quickly because there isn't that large element of tax which softens the impact."
Prices in July hit record levels with some suppliers charging nearly €1,500 for 1,000 litres of home heating oil.
But Daragh Cassidy of the consumer website Bonkers.ie said the price of heating homes has probably not reached its peak.
He said "Depending on the war in Ukraine, prices could increase even further.
"Some people are probably in for a shock when they go to [fill up] over the next few weeks. But now this winter we are going to have a full four or five months where energy prices are at absolute record levels."
The Government's plans for fuel rationing has been described as a fire drill. Mr McPartland added: "We have to be prudent and plan."
In Ireland, there are commercial oil stocks which would last "two to three weeks", he explained, while the National Oil Reserve had an emergency stock which would last 85 days should the oil supply dry up completely.
Plans are now in place for fuel rationing, with access on a priority basis. Mr McPartland said there are "tiers' of priority, which could change based on the duration of the supply threats."
The plan has been "worked up" over many years, with a clear list of essential workers that covers "more than just doctors and nurses" - with service stations dedicated for exclusive use by those prioritised.
"Normal" motorists would be limited to 15-20 litres. However, these scenarios are only designed to reduce oil consumption - which Mr McPartland said was an "unlikely scenario."
He added: "I've completed hundreds of fire drills, but I've never experienced a fire."
