Car drivers will be able to drive their vehicles with the fuel and petrol they buy at a discount when they use a car hire company in Dublin.
The scheme, which started on July 1, is aimed at attracting more people to the city by reducing fuel prices.
A new tax credit will be introduced for car hire companies who hire cars to transport people to and from jobs.
The credit is for a first time and is available to those who have a minimum of three people in the vehicle.
The first 30 cars will be allowed to be rented for €15, with the remaining vehicles paying €1.50 a kilometre, while the remaining 30 will pay €2.50 for the same distance.
The new scheme has been a long time coming.
Dublin has a high turnover of cars, and it has been slow to bring people onto its roads.
A study by the Transport Focus Group last year estimated that up to 50,000 new vehicles are registered each year in Dublin, with an average turnover of around €300,000 a year.
The city’s taxi and hire industry has struggled in recent years with traffic and the need to hire vehicles.
The taxi industry is in dire straits.
There are almost 50,00 cabs in Dublin alone, and the numbers are expected to fall by around 30 per cent by 2020.
This means the number of drivers is falling faster than the number employed.
The Taxi Association has estimated that between 10,000 and 20,000 taxi drivers will leave the industry by 2020, with up to 10,500 of them likely to be self-employed.
“If you have a company that offers you a job, and you’ve got your own car, you can’t go home and take the car to the office, but you can drive it to work,” said Sean McBride, the executive director of the Irish Taxi Association.
“It’s the perfect opportunity for us, for people that need a lift, it’s the right opportunity for them.”
The scheme is expected to be rolled out across Dublin in the coming months, with drivers to have their own cars.
“The scheme will help make our city more attractive to employers and will help to attract more businesses into the city,” said Ms McBride.
“Businesses will be better placed to find out about this opportunity to hire the best vehicles.”
Dublin Mayor, Brian Cowen, welcomed the announcement and said the scheme would allow people to get to work and spend time with their families.
“I am delighted to see that a new business model is being used to attract new businesses to the capital and create jobs,” he said.
There is a lot more work to do and we are working towards it.”