Vol. 397 No. 6
9 Mr. R. Bruton asked the Minister for Energy the reason oil products from the Whitegate Oil Refinery, County Cork, were sold at prices which were 30 per cent in excess of average Platts prices in the last half of 1989; and if he will make a statement on the matter.
The mandatory offtake régime, under which the Whitegate régime operates, requires the refinery to operate on a break-even basis.
The very substantial differentials between Whitegate and Platts prices referred to by the Deputy were brought about by the need to retrieve losses incurred in March to June 1989 when the price of output from the refinery was frozen.
Will the Minister give an indication whether the prices have returned? At the end of December 1989 there was still a dramatic differential. Will the Minister give an assurance that the current prices are more closely aligned to the average Platts prices?
Yes, the losses incurred were about £8.3 million and they have been retrieved. The deficit has been cleared and we are back to a normal pricing structure.
Will the Minister tell the House the relationship between the differential of Whitegate prices and the average Platts prices at present?
Early indications for 1990 are for a return to the more traditional margin ex-Whitegate over Platts prices standing at $27 per tonne for petrol and gas oils since January.
