A Cheann Comhairle, I am glad that you have allowed me raise this issue. As a frequent user of a car I must declare my interest at the outset. Petrol and diesel stations make up a large part of the economy in my peninsula, particularly as we are so close to the Border. The differential between petrol prices in the North and, more importantly, the exchange rate has yielded a large economic benefit in Border counties of which you, a Cheann Comhairle, will be aware as a Border Deputy. The argument is frequently made that petrol is more expensive in certain areas than in others. I often hear Conor Faughnan on the radio encouraging people to shop around for a better deal. That is something I will allude to later.
On the question of the differential between petrol prices, the price of petrol has not increased in various budgets over the years. Recent budgets have been good to petrol station owners. In the December budget there was a 3 cent increase in the price of diesel, which came into effect on the night of the budget.
That leads me to something I have noticed in the past few days. I was astonished to find that where there used to be a differential of around 10 cent between diesel and petrol prices because diesel is much cheaper to produce – I can only speak for Dublin where I have been for the past number of days – it is now the case that diesel and petrol prices are converging so they are either very close or exactly the same. In some stations diesel is now more expensive than petrol. That is confusing and I want the matter clarified. Is there a Government reason behind this or is there another reason?
The usual complaint is that there are large differentials in prices among regions. I made a return journey to the south-east on Tuesday and I noticed that one station was selling petrol at approximately 85 cent per litre while diesel was being sold at approximately 81 cent per litre. Another station in the same town was selling diesel for 94 cent per litre and petrol for 92 cent per litre. One could shop around in that town and decide to go for the cheaper option but as I got closer to Dublin and on to the Naas dual carriageway, I found that four out of the five petrol stations were selling diesel at 93.6 cent per litre and petrol at 93.9 cent per litre. With four out of five stations selling at those prices, it would be more difficult to shop around.
Having asked some members of the public about this, one reason I was given was that the Government has put some new duty on diesel. Is that fact or fiction? The December budget brought in the 3 cent increase but I do not remember an increase since then. The second reason is that people link the war in Iraq with increases in oil prices yet media reports say the price of oil has reduced in the recent past. Even if war had increased the price of oil, why would the result be a price convergence of a commodity such as diesel, which is cheaper to produce than petrol? Does the Department of Finance have a response in that regard?
The Director of Consumer Affairs must examine this issue. Too many people just fill up their cars with petrol or diesel without looking at the price per litre, nor do they compare prices among stations. As consumers we should play our part in supporting those who are engaging in fair play, and I do not relate that to any individual petrol seller.
On another level, the Director of Consumer Affairs should intervene and ensure consumers are protected when we get to the stage where options of what should constitute fair play begin to disappear. In that regard I refer specifically to the convergence of diesel and petrol prices. I want the Government to indicate whether it is responsible for the recent change and if it is not, who is responsible and what can be done?
Deregulation can assist the price of any commodity if it generates competition but has the time come to explore the way stations in various parts of the country—
