asked the Minister for Industry and Energy whether it is the Government's intention to allow the current reductions in oil prices to be spread pro rata across the barrel to all products or whether they will be weighted in favour of petrol.
Ceisteanna—Questions. Oral Answers. - Oil Price Reductions.
9.
Wholesale product prices of petrol and oil ex-Whitegate are proposed by the Irish National Petroleum Corporation on a quarterly basis, agreed by me and submitted to the National Prices Commission. On approval by the Minister for Trade, Commerce and Tourism they are notified to the marketing companies who combine these prices with those of the directly imported products and the resulting proposed retail prices are subject to the normal price control procedures.
For the quarter beginning 1 April significant reductions are being proposed for Whitegate products. The extent of these reductions as compared with prices for the first quarter of 1983 are: regular and premium petrol down $61 a tonne, a 15 per cent reduction; diesel oil down $27 a tonne, an 8 per cent reduction.
The Deputy will see that I am favouring petrol in applying these cost reductions which result from changes in the crude procurement policy, decreased crude selling prices and an improved efficiency of the Whitegate operation.
I cannot say by how much and in respect of what products the directly imported product prices will decrease. These make up 65 per cent of the market. The final decision on product retail prices under the price control procedure rests with the Minister for Trade, Commerce and Tourism.
What will be the reduction in heavy fuel oil prices?
The current Whitegate prices and the proposed revisions are as follows: regular motor spirit, currently $395 per tonne, will be reduced to $334; premium motor spirit, $405 per tonne, will be reduced to $344; and gas oil, now $325 per tonne, will be reduced to $298 per tonne.
I asked if the Minister would give the reduction in heavy fuel oil prices. He has not yet given that information. I appreciate the information he gave but heavy fuel oil is the greatest single product coming from that refinery and it is vitally important to know what the reduction is.
On a purely Whitegate basis, which represents only 35 per cent of the market and excluding VAT, the figures I have given would represent a reduction of 15p on a gallon of petrol and 7p on a gallon of gas oil. The reductions in respect of a national gallon would be approximately one-third of these figures because of the element of directly imported products, which represents 65 per cent of the market.
They will go down too.
I hope so. The prices suggested are based on a recent average import price for each importer.
My question relates to heavy fuel oil and I still cannot get the answer. Perhaps the answer is that there is no reduction in the price of heavy fuel oil. If that is so, the fear I imply in my question that the reductions will be weighted in favour of petrol are borne out. Is this weighting in favour of petrol in order to allow the Minister for Finance the maximum scope to increase the tax on petrol and the yield from petrol? Does the Minister realise the importance of heavy fuel oil to the economy, for example, to the ESB and industry generally? Why is it that there is no reduction in heavy fuel oil, on which the tax element would be very small, while by far the biggest reduction is on petrol, which will not be passed on to the consumer but will go the Exchequer in tax?
Will the Deputy ask a question?
I have asked three questions and did not get any answer.
The reason why petrol has been favoured on this occasion is that the original schedule of ex-Whitegate prices involved disproportionately higher prices for petrol and an adjustment is being made to compensate for that.
Is it just coincidence that the price of petrol is reduced by an inordinate amount on this occasion and heavy fuel oil is not reduced at all? Is it in order to allow the Minister for Finance to take up the difference in tax?
The Deputy asked that question at least twice before.
I did and I did not get an answer.
I am sorry. I cannot do anything about that.
The answer is yes, it is just coincidence.
Can I ask one final supplementary?
I am sorry, no, we are going on to the next question.
It is very interesting that there should be a reduction of 15p in the price of petrol——
I have called the next question.
What about the 8p reduction which, by law, should be given to the consumer?
Deputy Flynn is being deliberately disorderly.
It is not my custom to be so.
I cannot understand why there has been this consistent failure of the wind generator in County Mayo.
Has the Minister got the pronunciation right yet?