asked the Minister for Industry, Commerce and Tourism the reason the price of naphtha has risen by 300 per cent since 5 July 1977 and the steps, if any, he has taken to stabilise the price to this product.
Written Answers. - Naptha Price
18.
In this country, naphtha is sold to gas producers under contracts agreed between the producers and their suppliers. The contracts contain clauses which provide for variation in the price. Contracts of this nature are outside the scope of the Prices Acts and accordingly I have no legal powers to intervene where increases in naphtha prices have taken place on foot of freely negotiated price contracts.
In the period July 1977 to date the price of naphtha to town gas producers has increased by between 86 per cent and 139 per cent, and not by 300 per cent as suggested by the Deputy. The main reasons behind the increase in naphtha prices are the increase in the price of crude oil, of which naphtha is a derivative.
The Deputy will be aware of the recent publication of a summary of the conclusions and recommendations contained in the Report of the Town Gas Industry Review Committee in regard to the feasibility of gas utilities being supplied with natural gas.