asked the Minister for Industry, Trade, Commerce and Tourism the reason, in spite of the decline in prices in the international oil market, the price of domestic fuel has not been reduced accordingly although petrol prices have been reduced by 20p per gallon in recent months; the reason the basic price of petrol nett of all taxation and Exchequer imports is still higher than that of Britain and most other EC countries and if he will make a statement on the matter.
Written Answers. - Domestic Fuel Prices.
35.
Over the past six months the VAT exclusive wholesale price of premium petrol was reduced by 18.9p per gallon while gas oil was reduced by 3.7p per gallon. Over the six month period to November 1985 the international price of premium petrol reduced by $11 per tonne while gas oil actually increased by $57 per tonne. While other factors such as currency movements and a reduction in Whitegate prices were also taken into account in the monthly price adjustments the main cause of the more favourable movement of petrol prices here as compared to domestic heating oil was the variation in international dollar prices over the period.
The main causes of any current differential in petrol prices in Ireland compared to the UK or other European countries arise from our different market structure, leading to the higher retail margins and distribution costs together with the additional cost of sea freight.