asked the Minister for Industry and Commerce if he will give details of the discussions he has held with the oil companies; the proposals which have been agreed upon; if he expects a rise in petrol prices in the near future; if so, when; the magnitude of the price increase; if, in the interests of containing input costs to industry, the Government are considering changes in either excise duties or VAT rates; and if he will make a statement on the matter.
Written Answers. - Petrol Prices.
79.
I had discussions with the oil companies on both 31 March and 13 April. Prior to the meeting in April some of the companies had threatened to cease importing petrol into Ireland. At an early stage of that meeting they agreed to continue importing petrol.
Both sides agreed on the fundamental importance of attaining faster economic growth in Ireland and on the essential contribution which low inflation must play in achieving this.
It was noted that the difficulties in the market for petrol related to one-quarter of the total oil market. Diesel, fuel oil, heating oil and kerosene are the products of key importance for agriculture, industry and the business sectors and account for three-quarter of the market.
Following the meeting I introduced a maximum prices order controlling the retail price of petrol at levels current at that time; announced plans to introduce legislation banning the use of gifts, stamps and other incentives at petrol stations; allowed an adjustment between wholesale and retail margins to take account of the abolition of the gift schemes; requested the chairman of the Fair Trade Commission to undertake a study in trends in international oil product prices and announced that the INPC would produce additional supplies at below world market prices.
I have now received the report. However, until I have examined it and its implications in detail, it would be inappropriate for me to comment on its contents or its recommendations. I will be discussing these with the oil companies shortly.