asked the Minister for Industry and Commerce if he is aware that there is a discrepancy in the petrol prices now being charged by different companies; and if he is satisfied that present prices are a true reflection of costs and growing competition.
Ceisteanna—Questions. Oral Answers. - Petrol Prices.
47.
I am satisfied that the force of competition is sufficient to keep petrol prices at a reasonable level and that intervention on my part is not called for in present circumstances.
Is the Minister aware of the undoubted costs being borne by several competing companies at the moment in underwriting rather expensive advertising campaigns? Is he further aware of the tremendous cuts in cost which have occurred in Britain over the past week? Is he satisfied that the situation of the prices here is as a result of genuine competition between different companies?
First, in regard to the cuts that have taken place in other places, I understand they are to a large extent based on regional variations. In other words, where costs can be cut in regard to the transporting of petrol in certain regions, this cut is being passed on to the consumer. This is not being done in this country. Indeed, it is doubtful if it is something that should be pushed too far.
As regards how much money goes in advertising, this of course is a very debatable proposition because, as we know, advertising itself may well lead to the greater use of the commodity, and advertising agents exist because it is believed their activities increase the consumption of a commodity rather than add to the overheads. Furthermore, I would point out to the Deputy that one of the larger companies operating in this country has not increased its prices apart from increases imposed by taxation, since August, 1958, and has in fact decreased its prices on six different occasions.
The average motorist, if he wants any temptation to buy any more petrol, would certainly yield to the temptation to buy more petrol if petrol prices were reduced instead of putting a tiger in his tank or a ticket in his back seat. The Minister should seriously consider the matter.
If you got the "E" of "Tiger," you would be glad to get it.
Those schemes may not cost as much as they appear to cost.