asked the Minister for Industry and Commerce whether his attention has been drawn to an article in a provincial newspaper of the 29th January, 1952, regarding the export of industrial alcohol to Great Britain in which it was stated that the export of this commodity would result in an ultimate reduction in the price of petrol in view of the fact that petrol companies had paid a price in the region of 10/- per gallon for industrial alcohol; and that the standard of petrol in Munster would not be affected as the petrol-alcohol mixture had been generally sold in the Dublin area while petrol was imported to the South of Ireland directly; and, if so, whether he will state what justification there was for persons purchasing petrol in the South of Ireland having to pay a higher price than that paid in the Dublin area, particularly in view of the fact that this petrol does not contain industrial alcohol.
Ceisteanna—Questions. Oral Answers. - Price of Petrol.
I have seen the newspaper article to which the Deputy refers. The differential of 1d. per gallon between the price of petrol in the Dublin zone and in other areas is in accordance with a long-standing trade custom and it has not been considered necessary to interfere with the practice for the purpose of price control. This differential is not affected by the use of industrial alcohol as the prices fixed for petrol have been calculated on the basis of averaging the cost of industrial alcohol with that of the total quantity of petrol imported into the State.
Is it correct to state (a) that petrol is coming in directly to the South, (b) that industrial alcohol is mixed with the petrol in Dublin, the industrial alcohol roughly costing 10/-per gallon? If so, and if petrol is coming into the South, why is it that people purchasing petrol in the South are victimised to the extent of having to pay 1d. per gallon more than the people around the Dublin area for petrol?
The differential of a penny between Dublin and elsewhere has always persisted and is based upon calculations of the oil companies that it costs less to distribute petrol in the Dublin area than elsewhere. It has nothing whatever to do with the admixture of industrial alcohol. So far as the sale of blended spirit is concerned there are no restrictions on the petrol companies as to where they may sell it.
Is it correct to state that the people in the South are at the mercy of these petrol companies because it suits them to charge more to the people in the South than in the Midlands or in the Dublin area?
It is rather the reverse. It is possible to charge a cheaper price in Dublin because the costs of distribution in Dublin are less.
Because the Government is situated in Dublin.
asked the Minister for Industry and Commerce if he will state what reduction in the price of petrol, per gallon, will result from the export of all home-produced alcohol.
asked the Minister for Industry and Commerce if he will state the terms of the agreement for the sale of industrial alcohol by Ceimicí, Teoranta, and if a reduction in the retail price of petrol may be expected as a result of this agreement.
With the permission of the Ceann Comhairle I propose to take Questions No. 15 and No. 16 together.
The agreement is for the sale of almost the entire output of industrial alcohol by Ceimicí, Teoranta, for a period of approximately 12 months. As this is an ordinary commercial transaction the publication of further details is undesirable, but I can say that no loss is anticipated by Ceimicí, Teoranta.
It is not intended to reduce the retail price of petrol as a result of this agreement.
Can the Minister say, in view of the admixture of industrial alcohol with petrol, if any reduction in the price of petrol is contemplated at present?
It is intended to adjust that situation by altering the rate of the customs duty on petrol.
In the Budget?
It is possible that the scheme will come into operation earlier but I could not say definitely that it will.
Does it follow that the Exchequer will benefit by the reduction?
The Exchequer will benefit.
To what extent per gallon?
It is something less than 1½d. per gallon.