asked the Minister for Finance if, in order to offset petrol and fuel price increases, he will consider reducing taxes on oil products.
Ceisteanna—Questions. Oral Answers. - Taxes on Oil Products.
50.
I assume that what the Deputy has in mind are the fiscal duties on petrol and diesel used as fuel in road motor vehicles. These duties, exclusive of value-added tax, will yield the Exchequer an estimated £60 million in the current financial year and to reduce their levels would obviously result in reducing the revenue necessary for many essential economic and social services. In the circumstances I do not propose to reduce them.
At the time of the first Middle East crisis, which I recollect since I was elected to this House, the price of petrol went up by 1s and, when the crisis was over, the price did not come down again.
Has the Deputy a question?
Surely the increased cost of fuel will effect the cost of living considerably if it is maintained and, in order to prevent an increase in the cost of living, would the Minister not consider taking the steps suggested in the question?
It is not yet clear what increase in prices, if any, will result as a consequence of the recent increases charged by the oil producing countries. We would be hopeful that they would not be of serious dimensions. The Deputy can be assured that, in the Government's consideration of the matter, they will not follow the bad example set in previous days.
Is the Minister aware that the Middle East countries, from which we get 95 per cent of our supplies, have increased the price of crude oil almost three times in the past 12 months. Surely this must be reflected in the cost of fuel?
We are well aware of the ex parte increases made by the oil producing countries, but it is important to remember that the original cost is not the only factor in the ultimate cost of the retail purchaser. There is also the cost of transport and processing the oil, and the tax revenue.
The remaining questions will appear on tomorrow's Order Paper.