Dáil Éireann Debate, Tuesday - 11 June 2013
522. Deputy Bernard J. Durkan asked the Minister for Communications, Energy and Natural Resources the extent to which motor fuel prices at the pumps have been reduced in line with the prices on world markets with particular reference to the fall in such prices in the past six months; if the prices at filling stations will fall proportionately; and if he will make a statement on the matter. [27341/13]
View answerRecent trends in international oil prices have indeed been downwards and pump prices in Ireland in the last 6 months indicate that motor fuel pump prices have also been falling. The average price at the pumps at the start of November 2012 for diesel was €1.57 per litre, while the average price for unleaded petrol was €1.64 per litre. By the end of April 2013, the average price for diesel at the pumps was €1.51 per litre, while for unleaded petrol it was €1.59 per litre and, more recently, has fallen somewhat further.
A study into motor fuel prices at the pumps was carried out by the National Consumer Agency in 2008 in its Investigation into Petrol and Diesel Price Movements. Among the main findings were that:
- There is little evidence to suggest unwarranted delays in the passing on of wholesale price changes to the consumer at the pump.
- Direct comparison between fluctuations in crude oil prices and petrol and diesel pump prices is inappropriate and does not reflect the reality of the petrol and diesel supply chain. To more accurately assess flow through of price changes in refined oil products (such as petrol and diesel) to the consumer, it is necessary to compare fluctuations in Platts prices, these being the prices for refined oil products such as petrol and diesel paid by wholesalers, and prices at the forecourt pump (Platts is a provider of energy information including crude oil and refined prices.)
- Platts prices and wholesale prices should differ by a margin comprising the impact of exchange rates, taxes, transportation and associated costs. The subsequent difference between wholesale and pump prices is typically dictated by the purchasing power of the end retailer (discounts accrue based on volumes purchased, membership of a "branded" chain etc.) and an allowance for the retailer's margin.
- Analyses of these fluctuations over the time period of this study suggest a strong correlation between Platts prices and wholesale price fluctuations and the price of diesel and petrol at the pump, allowing for changes in the euro/dollar exchange rates.
- A large proportion of the pump price of fuel in this country comprises taxes and duties. The manner of their calculation can depress overall pump cost savings to consumers, notwithstanding drops in the underlying cost of the refined fuel product.
- Overall, Ireland's service station/retail petrol and diesel supply market would appear to be competitive by international standards.
