Dáil Éireann debate -
Wednesday, 26 Jun 1996

Vol. 467 No. 5

Written Answers. - Oil Price Increases.

John Browne

Question:

30 Mr. Browne (Wexford) asked the Minister for Enterprise and Employment his views on the recent increases in oil prices; the effects, if any, these increases will have on Ireland's industries; his views on whether such increases are justified; and if he will make a statement on the matter. [10675/96]

Minister for Enterprise and Employment (Mr. R. Bruton)

The price of petroleum products was decontrolled in September 1991 with the entry into force of the Competition Act, 1991.

According to information provided to me by the Department of Transport, Energy and Communications, the following are the prices of petroleum products in May 1995 and May 1996:

	Final selling price — pence per litre
May 1995	May 1996
Euro grade (95 Octane) Unleaded Petrol	56.7-57.2	56.9-61.5
Leaded Petrol	60.6-61.3	64.7-65.6
Road Diesel	53.2-53.8	57.3-57.9
Domestic Gas Oil	23.63-24.05	26.13-26.61

These prices are "suggested" prices supplied by the oil companies. Actual prices charged by individual wholesalers and retailers will vary from the above depending on competition, marketing policies and practices etc. of wholesalers and retailers.

With regard to the increase in petroleum products noted in May 1995-96 the bulk of the increase is the result of the rise in crude oil on international markets. The increase announced in the budget and the consequently higher monetary amounts of applicable value added tax have also contributed to the increase.

For the manufacturing industry energy expenditure represents about 1.80 per cent of gross output. For industry overall, energy expenditure represent about 2.91 per cent of gross output. Petroleum oils on their own represent about 0.62 per cent. In this context, the price increases experienced in oil products over recent months would not, in general, have a significant effect on Irish industry.

Some industries have, of course, above average energy usage. Examples include manufacture of non-metallic mineral products and mining and quarrying. These sectors would be more affected by oil product price increases. It is difficult to be precise, however, about the significance of that effect.