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Dáil Éireann debate -
Wednesday, 25 Nov 1998

Vol. 497 No. 3

Written Answers - Motor Fuels.

Paul McGrath

Question:

54 Mr. McGrath asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the wide variation in the retail price of petrol and diesel; if her attention has further been drawn to the fact that price differences of over 10p per litre are common from one town to another; the evidence, if any, she has of price fixing in particular areas; and the mechanism, if any, she has by which prices can be standardised. [24914/98]

I am aware of the price differences for petrol within the cities and in different parts of the country. In regard to petrol retailing, the policy of recent successive Governments has been to promote competition and consumer choice. Price control, fixing prices on petroleum products, was abandoned as policy in 1991 and there is therefore no standardised maximum price. The Office of the Director of Consumer Affairs monitors the display of petrol and diesel prices to ensure that they comply with the display requirements of the Retail Price (Diesel and Petrol) Display Order, 1997. Persons selling petrol and diesel products are required to specify, in a manner set out in the order, the price per litre being charged for these commodities.

The Competition Act, 1991 prohibits anti-competitive practices, such as agreements, decisions and concerted practices which have as their object or effect the prevention, restriction or distortion of competition, and the abuse of a dominant position. The Act applies to undertakings, an undertaking being defined as a person being an individual, a body corporate or an unnamed corporate body or persons engaged for gain in the production, supply or distribution of goods or the provision of a service. It should be noted that the Competition Authority has responsibility for enforcing the Competition Acts and in particular section 4 of the 1991 Act which prohibits, inter alia, the direct or indirect fixing of prices.

As a result of the enactment of the Competition (Amendment) Act, 1996, which gave public enforcement powers to the Competition Authority, there are two alternative ways for an individual-firm to pursue allegations of breaches of competition rules. The first is to take civil action under section 6 of the Competition Act, 1991, or second, to make a complaint to the Director of Competition Enforcement requesting him to investigate alleged breach or breaches of competition law. Any complaints therefore alleging collusion or price fixing in regard to petrol are a matter for the Director of Competition Enforcement to investigate.

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