The Environment Minister is dismissing claims the increase in carbon tax is a "cash-grab".
From midnight, the change will add around 2c to a litre of petrol or diesel, or about €36 per year in fuel costs for the average motorist.
The AA says the increase will do little to reduce the country's over-reliance on the private car, claiming it's a cash-grab that will push up the cost of living.
Minister Richard Bruton says that's not the case:
"The reality is that it's not a cash-grab. Every cent that we raise is going to be ploughed back into changes that will help people decarbonise their lives.
"Okay, someone might not be able to switch from diesel this year because they have a relatively new car but they can look at their home and drawdown grants under the schemes that allow them improve their fabric or heating system."