Dáil Éireann Debate, Tuesday - 26 July 2022
117. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications the oversight measures that he has put in place to ensure that any decrease in global oil prices is passed onto Irish consumers at the forecourts and in home heating oil prices in a timely manner; and if he will make a statement on the matter. [40798/22]
View answerOverall, the supply outlook for petroleum products in the Irish market is positive, with no major supply difficulties expected by industry. In addition, the National Oil Reserves Agency (NORA) currently holds approximately 85 days of oil stocks, the overwhelming majority of which is in the form of physical product, with approximately 85% stored on the island of Ireland.
Notwithstanding the positive supply outlook, my Department, in conjunction with NORA, continues to work closely with the petroleum industry to monitor supplies of oil into the Irish marketplace. NORA is ready to release strategic stocks to the market, if required.
In terms of pricing, the Irish retail oil sector is an open and competitive market. Accordingly, my Department has no role in the setting of fuel prices. The retail price of petrol and diesel at the pumps is determined by a number of factors, including the price of crude oil and refined product on the markets and, as oil is traded almost exclusively in US Dollars, the strength of the US Dollar against the Euro.
Currently, the European oil markets are tight, due primarily to the war in Ukraine, and in response to the corresponding high prices, on 10 March 2022 the Minister for Finance introduced a temporary reduction in the rate of excise duty by 20 cent per litre of petrol, 15 cent per litre of diesel and 2 cent on marked gas oil. These reductions are to remain in place until 31 August 2022. A further cut in excise duty of 1 cent per on petrol and diesel came into force on 1 April 2022.
To ensure that the domestic fuel market operates in the interest of consumers, the Competition and Consumer Protection Commission (CCPC), under the aegis of the Department of Enterprise, Trade, & Employment (DETE), has responsibility for ensuring that the market is functioning correctly and that consumers are not being unfairly disadvantaged.
