Dáil Éireann Debate, Thursday - 13 February 2014
164. Deputy Terence Flanagan asked the Minister for Communications, Energy and Natural Resources if the energy regulator ensures that consumers get lower prices for petrol when oil prices fall per barrel; and if he will make a statement on the matter. [7420/14]
View answerThe Commission for Energy Regulation has no statutory function in the regulation of petrol and diesel prices. The Maximum Prices Order was removed in 1991 and the market was deregulated. The Irish oil industry is fully privatised, liberalised and deregulated and there is free entry to the market. There is no price control in the oil sector and it is Government policy to encourage price competition and consumer choice.
Prices at the pump reflect volatile market prices, transportation costs, trends in exchange rates and other operating costs along with taxation.
The Irish Petroleum Industry Association have noted in their publication "What determines pump prices?" that while the long-term trend in the price of crude oil has generally had an effect on the price of refined products, the pressures of supply and demand for refined products have tended to lag those of crude oil and can be affected by other forces.
The Deputy will be aware that the National Consumer Agency has specific responsibilities for protecting the rights of consumers. In December 2008, the National Consumer Agency published an Investigation into Petrol and Diesel Price Movements. In this, they concluded 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. ….Examination of the accounts of the larger oil companies in Ireland suggest there is relatively modest profit to be made in the downstream supply of refined oil products ."
