Skip to main content
Normal View

Fuel Prices.

Dáil Éireann Debate, Tuesday - 1 June 2004

Tuesday, 1 June 2004

Questions (209, 210)

Paddy McHugh

Question:

228 Mr. McHugh asked the Minister for Communications, Marine and Natural Resources in view of the recent costs increases, the plans the Government have while holding the EU Presidency to bring forward proposals to give more certainty to fuel prices and to regulate oil companies, so as to alleviate some of the difficulties faced by hauliers; and if he will make a statement on the matter. [16616/04]

View answer

Paddy McHugh

Question:

229 Mr. McHugh asked the Minister for Communications, Marine and Natural Resources in view of the recent cost increase, the plans the Government is pursuing with its EU partners to source alternative sources of fuel; and if he will make a statement on the matter. [16617/04]

View answer

Written answers

I propose to take Questions Nos. 228 and 229 together.

The price of oil is set by the international oil market, with supply into that market being influenced by OPEC policies. The current high price reflects a complex interaction of unanticipated strong demand, tight capacities, geopolitical uncertainties and the influence of speculators on the markets. There is however no disruption to oil supplies.

The Irish oil market is an open and private sector one. Retail prices take account of factors such as international market price, importation and distribution costs, and euro-dollar fluctuations. The relative weak performance of the US dollar against the euro softened the impact for Ireland of increasing prices for some time. I appreciate that current high prices impact more severely on certain sectors, including hauliers.

It is clear that economic recovery worldwide, and especially in developing countries, would benefit from stable oil prices at a reasonable level. In this context, continued volatility in international oil prices is on the agendas of the G7 countries, the European Union, OPEC, the International Energy Agency, IEA, and the International Energy Forum, IEF.

I attended the recent ninth IEF held in Amsterdam on 22 to 24 May. While it is not possible for the EU Presidency to bring forward proposals regarding the operation of the oil industry in the context that the sole right of initiative in the EU rests with the Commission, the situation is being closely monitored at EU level through the working group on oil supply which met most recently on 26 May to review the current price situation and also to review emergency supply arrangements in place in member states to ensure an efficient, timely and co-ordinated response in the event of an oil supply disruption. The matter is also to be discussed by EU Finance Ministers this week.

I have no function in regard to the sourcing of alternative fuels in the context of cost increases.

Top
Share