asked the Minister for Industry, Commerce and Energy if he is aware of any further increases anticipated in oil prices in 1979 by the OPEC countries.
Ceisteanna—Questions. Oral Answers. - Oil Prices.
20.
Certain members of OPEC viz. Kuwait, Iran, Libya, Nigeria, Algeria and Iraq, recently increased the price of their oil but, except in the case of Algeria and Libya, these increases do not appear to exceed the price ceiling agreed on by OPEC at their Geneva Conference last June.
There has been a great deal of comment and speculation about further individual or general price increases but I am not aware that any firm decisions for across-the-board increases have been taken at this time.
21.
asked the Minister for Industry, Commerce and Energy the reasons for the increase in August 1979 of 12 pence per gallon of petrol; if further OPEC upward price movements of crude oil are due to be passed on to the consumer; and the amount in pence and percentage terms of the increase in the average price of petrol since June 1977.
Following their examination of price increase proposals from the oil companies who were seeking compensation for the escalation in the costs of imported crude oil and refined petroleum products, the National Prices Commission recommended to me that no objection be raised to an increase in petrol prices of 11p per gallon, inclusive of VAT at the retail level. In addition, the commission recommended a further increase of 1p per gallon inclusive of VAT in petrol retailers' margins in order to compensate them for increased labour and overhead costs.
I accepted both of these recommendations and gave effect to an increase of 12p per gallon inclusive of VAT at retail level in a new Maximum Prices (Petroleum Products) Order operative from 4 August 1979.
Any further upward movements in the price of crude oil on the world market must eventually filter through to the consumer who will have to pay a higher price for oil products. However, the extent of any such increase to the consumer would not be known until such time as the Irish oil companies submitted detailed price increase applications to the National Prices Commission, seeking compensation for further cost increase in the price of crude oil.
The following increases have occurred in the average price of petrol (Grades I, II, and III) since June 1977, both in pence and percentage terms:
|
Brand of petrol |
Increase in pence per gallon |
% Increase |
|
Grade I |
25.06 |
25.85 |
|
Grade II |
25.03 |
25.96 |
|
Grade III |
24.77 |
26.07 |