Vol. 388 No. 8
asked the Minister for Energy whether he has sought or obtained information from the Irish National Petroleum Corporation regarding the effect that the present level of motor fuel pricing will have on the commercial performance of Whitegate Oil Refinery, County Cork in the coming months.
19.
asked the Minister for Energy if the Irish National Petroleum Corporation sought to increase the price of petrol by nine pence per gallon; and the implications which this has for the relative efficiency of the Whitegate Oil Refinery, County Cork.
25.
asked the Minister for Energy the losses which will be incurred by Whitegate Oil Refinery, County Cork, as a result of the order of the Minister for Industry and Commerce against an increase in petrol prices.
I propose to take Questions Nos. 6, 19 and 25 together.
INPC prices are usually set for a quarterly period and include price and exchange rate adjustments; any operational deficits and surpluses which arise from time to time are offset without much delay through normal trading adjustments in subsequent periods.
A price increase was sought by the company for the second quarter as an offset against price and exchange rate adjustments in the previous period. I am aware of the current trading position of the company which is based for the present on a continuation of first quarter prices. This situation is, however, transitory and will be eliminated in the coming months, so as to return INPC to a breakeven position.
On what basis does the Minister say that the losses are transitory at present?
As the Deputy will be aware, the Minister for Industry and Commerce has imposed a price freeze which is not the subject of consideration by the Fair Trade Commission. I would expect that an interim report would be available to the Minister in the very near future.
Is it not the case that the INPC have sought a 27p increase on their share of supply to the petrol market? Is it not also the case that those in the industry are saying that this would impose £10 million per quarter loss on the INPC? Is it not further the case that the Fair Trade Commission will not be examining this particular application for an increase, that it will be the Minister present who will be considering that application?
With regard to the price per gallon, the Deputy clearly has received some figures which are quite wrong.
Perhaps the Minister would clarify this.
When I indicated that the loss was transitory, I want to explain to the House that losses, or indeed surpluses, in trading are nothing new. Over a period of time these will be addressed. What I would be interested in ensuring is that INPC return to a break-even position as quickly as possible which would be phased in and at the same time that consideration would be given to easing any problems which might arise to the petrol users as a whole.
Would the Minister not agree that the Fair Trade Commission to which he refers are not examining this price application from INPC, that it is the Minister himself who will decide on that application?
We are having repetition.
The Minister did not give a reply.
Is it not the case that the Minister will have to make a decision one way or the other as to when the losses which he says are transitory will be dealt with and how? Is it not the case that with asset values of only £6 million with regard to the INPC, even two months of present trading would indicate that they would be trading insolvent?
The Deputy should take into account the overall situation. We are dealing, first, with the mandatory régime of 35 per cent and where an additional 25 per cent is being added into the market at a break-even cost for INPC. It is impossible to talk about 55 per cent or 60 per cent of the domestic market without including that in the overall context of the ongoing examination. Surely at this stage, in any mathematics that can be used, up to 60 per cent of the present trade could not be excluded from consideration in determining the final road the Government will go on foot of the commission's report.
A final supplementary question, please?
What is the price of application by the INPC to the Minister for this quarter? What is the increase in price on the gallons they are supplying within that 35 per cent quota? How many pence per gallon?
For me to answer that question the Deputy would have to assume that the price for——
I am asking what the application is for.
Is 27p wrong?
The traditional pattern was for a quarterly review——
What are they looking for for this quarter?
Let us hear the Minister's reply, without interruption.
The present review will cover the monthly or quarterly position.
The Minister has not answered the query about the 27p.
The Deputy's Government wanted to close down the refinery. He should not talk too much about it.
This is about the 27p.
