asked the Minister for Energy if he is aware that the cost to the motorist of maintaining the Whitegate refinery is currently 11p per gallon of petrol at retail price; and whether in the circumstances he believes the maintenance of the present regime is justified.
Ceisteanna—Questions. Oral Answers. - Whitegate Refinery.
9.
I am not aware of the basis on which the Deputy has computed the figure quoted. The only valid determinant of the cost or benefit of Whitegate refinery to the Irish oil consumer is the comparison between Whitegate product prices and the actual import price of products imported by the oil marketing companies. Data on current actual import prices for January and February 1986 are not yet to hand. Only when such data are available will it be possible to determine the current impact of Whitegate/import price differentials on consumer prices. In the most recent month for which actual import price data are available, December 1985, there was a favourable comparison of $26.29 per tonne, equivalent to about 0.07 pence per gallon between the ex-Whitegate price and the import price of petrol in that month. Indeed it is noteworthy that for all but four months of 1985 the price of petrol from Whitegate was lower than the import price of petrol from other sources.
The nature of the mandatory regime by which Whitegate products are disposed of is such that prices are adjusted on a quarterly basis so that there is a time lag involved in passing through benefits in a time of falling prices or additional costs in a time of rising prices. Market price movements in any one quarter, such as those which we have witnessed in recent weeks, are not reflected in Whitegate prices until the succeeding quarter. The impact of Whitegate on consumer prices can, therefore, only be assessed over a period of time and then, as I have said, only on the basis of a comparison with actual import prices rather than deemed or speculated prices.
The refinery was purchased and is being maintained in the interests of security of supply. Nothing, in my view, which has happened since purchase of the refinery has fundamentally diminished that rationale. The fact that so far the eighties has not seen oil supply disruptions akin to those of the seventies or that there is no immediate apparent prospect of serious disruption is not sufficient reason to dispense with security of supply considerations.
Will the Minister not accept that there is serious dispute as to the basis of the figures on which he made his reply? Will he accept that recent figures are available and are published weekly in the European Commission Oil Bulletin? Will the Minister accept that the figures for 24 February 1986 show that the average consumer price in Ireland pre-tax is $327 per tonne whereas the EC average is $224 per tonne? Will the Minister accept that the data for February shows that the imported cost of petrol here was $184 per tonne while the basic Whitegate price at that time was $296 per tonne? Going through all the calculations which can be made — although this is not the place to do so — they show a differential of 12½p per gallon. I do not expect the Minister to reply in detail, but does he accept that there is a basis for genuine concern regarding the figures issued by the INPC and upon which the calculations are made? If Whitegate are competitive, as the INPC claim, why do they have to be protected by the law which guarantees that one third of what they produce will be bought by oil companies here? If they are competitive, it is not necessary and if they are not competitive, it is an extra burden on the consumer.
The Deputy asked quite a few questions.
I am not quite sure where to start. I do not have the figures to which the Deputy referred and I made a fair and reasonable effort to point out that when the figures for January and February become available we will be able to assess the position, if necessary in public. Whatever the Deputy maintains about disputes and the question of the prices ex-Whitegate, the figures which I stated in relation to 1985 show that, except for four months, the ex-Whitegate petrol was cheaper than the import price and the Deputy must accept that. In relation to the mandatory regime, I do not see a particular reason, because of the present comfort in relation to oil, for displacing that regime because, as we all found out in the mid-seventies, the oil situation can vary from good to bad and worse very quickly.
I am not happy with the reply given by the Minister but rather than bandy figures across the House, would he not accept that there is a basic fundamental dispute between bona fide energy experts and the INPC regarding the figures supplied by the INPC? Could he arrange to meet me and others who are interested to try to get the basic facts?
Like my exploration policy, I have an open door policy in regard to this matter also, I would be quite happy to meet the Deputy and he can bring his friends with him.