asked the Minister for Industry and Energy if the substantial reductions in the price of petrol and oil from Whitegate oil refinery will be passed on to industry and motorists; and if he will make a statement of the matter.
Ceisteanna—Questions. Oral Answers. - Petrol and Oil Price Reductions.
5.
Subject to review by the National Prices Commission and the Minister for Trade, Commerce and Tourism of the actual amounts involved, the dollar prices of oil products from the Whitegate refinery will decrease significantly, with effect from 1 April. These reductions arise primarily from a change of emphasis in crude oil purchasing policy but also take account of reductions in official North Sea prices and improved yield performance at the refinery.
Reductions are expected also in the cost of oil products which are imported directly by the private oil industry.
The Deputy will appreciate that the extent to which reductions in the prices of oil products ex-Whitegate or imported directly may be reflected in consumer prices is a matter in relation to which I do not have specific responsibility. I might point, however, to the Budget Statement in which the Minister for Finance indicated that he was providing for a yield of £15 million this year from additional taxation on petrol and other road vehicle fuels.
Does the Minister accept that an excise duty of 7p per gallon will give the Minister for Finance the £15 million he mentioned in his Budget Statement? In that event what will happen to the remainder of the reduction that will be forthcoming this year? May we take it that motorists, industry and agriculture will get the benefit of any reduction over 7p per gallon?
As I have reminded the House the question of the price at the pumps is one specifically for the Minister for Trade, Commerce and Tourism and not the responsibility of the Minister for Energy.
The Minister did not answer my question. I asked the Minister if, bearing in mind that a reduction of 7p in the gallon would give the Minister for Finance £15 million, we can take it that anything above that figure will be passed on to the consumer?
I cannot permit a debate on this matter now. It has been debated already this week.
Why is it that the Minister cannot answer the question? The Government are keeping everything in the kitty.
6.
asked the Minister for Industry and Energy if the reduction in the price of ex-refinery world oil prices will be passed on in full to CIE.
The price of oil to CIE is primarily a matter for negotiation between that company and their suppliers but is presumably subject to review by the National Prices Commission and the Minister for Trade, Commerce and Tourism in the context of price control of the oil industry.
As far as supplies from the Whitegate refinery are concerned, CIE themselves are not direct customers of the refinery. The suppliers of oil to CIE will benefit from the significant reductions in ex-Whitegate prices from 1 April. It is assumed that the cost of oil imported directly by these suppliers will decrease also in a manner consistent with the downward trend in producer prices for oil.
In view of the fact that the Minister for Finance has stated that he will take into the Exchequer some of the reduction by way of excise duty will the Minister assure me that CIE, B & I, Aer Lingus and Irish Shipping will benefit fully from the drop in world prices?
The price of oil to CIE is a matter for negotiation between the company and the suppliers. The question of the price of these supplies is primarily a matter for the National Prices Commission and the Minister for Trade, Commerce and Tourism.
Is the Minister stating that the amount of excise duty taken is not a matter of concern to his Department and that he will not have any impact on the negotiations between CIE and the suppliers?
The amount of excise duty that might be charged for oil products is a matter primarily for the Minister for Finance. The question of the price of oil products to consumers is a matter for the Minister for Trade, Commerce and Tourism.
Will the Minister agree that it is crazy Stone Age economics to have the Minister for Finance taking money from CIE in excise duty and sending it back via the Minister for Transport to the tune of £86 million to CIE by way of subvention? Is that not Crazy Horse economics?
They did not have a current budget deficit in the context of a Stone Age economy.