James Leonard
Question:263 Mr. Leonard asked the Minister for Enterprise and Employment if he proposes to re-introduce price control on petrol and diesel oils. [10446/96]
Written Answers. - Motor Fuel Price.
As the Deputy is no doubt aware, the price of petroleum products was decontrolled in September 1991 with the entry into force of the Competition Act, 1991.
In this connection, I would refer the Deputy to the Competition Authority in their report, published 16 February, on the proposed Statoil-Conoco take-over in relation to motor fuel prices:
There has, in the past, been a considerable degree of concern that the level of competition in the motor fuel market was inadequate. Since the removal of price controls and surveillance and the abolition of the Restrictive Practices Order in 1991, the indications are that competition has increased. Casual observation indicates that there is a degree of divergence with respect to prices between various retail outlets and that there is considerable competition at a local level. As a result consumers who are prepared to shop around can benefit from lower prices.
Dermot Ahern
Question:264 Mr. D. Ahern asked the Minister for Enterprise and Employment if his attention has been drawn to the dramatic increase in petrol prices since the beginning of 1996; the action, if any, he intends to take in this regard; and if he will make a statement on the matter. [10079/96]
Seán Haughey
Question:265 Mr. Haughey asked the Minister for Enterprise and Employment the increases in oil and petrol prices that have been introduced to date in 1996; the reason for these increases; whether the increases were sanctioned by his Department; and if he will make a statement on the matter. [10150/96]
I propose to take Questions Nos. 264 and 265 together.
As the Deputies are no doubt aware, the price of petroleum products was decontrolled in September 1991 with the entry into force of the Competition Act, 1991. Therefore there is no obligation on the oil companies or petrol retailers to advise me in advance of their intention to increase prices or margins. Similarly, the question of sanctioning increases by my Department does not arise. According to information provided to me by the Department of Transport, Energy and Communications the price of petrol at retail level has arisen by as much as 4.6p. per litre in the period since 1 January 1996. The bulk of this increase is the result of the rise in crude oil prices on international markets. The increase of 0.72p. per litre announced in the budget and the consequentially higher monetary amounts of applicable value added tax account for the remainder.
The Department of Transport, Energy and Communications has also informed me that the wholesale price of home heating oil has arisen by about 1p a litre since the beginning of the year also reflecting higher international energy prices.
With regard to the general question of competition in the motor fuel market, I would like to take this opportunity to place on the record of the House the view expressed by the Competition Authority in their report, published 16 February, on the proposed Statoil/Conoco take-over:
There has, in the past, been a considerable degree of concern that the level of competition in the motor fuel market was inadequate. Since the removal of price controls and surveillance and the abolition of the Restrictive Practices Order in 1991, the indications are that competition has increased. Casual observation indicates that there is a degree of divergence with respect to prices between various retail outlets and that there is considerable competition at a local level. As a result consumers who are prepared to shop around can benefit from lower prices.