Dáil Éireann Debate, Wednesday - 26 January 2005
388 Mr. Cregan asked the Minister for Finance the situation regarding the price of diesel; if he will track the price vis-à-vis petrol at wholesale or retail level; the reason diesel has increased in price vis-à-vis petrol; if the increasing price of diesel is mainly due to production prices, refining or taxation; and if he will make a statement on the matter. [1987/05]
Amharc ar fhreagraFuel prices are driven by a number of factors, including the price of oil on international markets, exchange rates, production costs and refining costs. The rise in oil prices over recent periods reflected additional factors such as geopolitical uncertainty, supply disruptions and strong economic growth in "catch-up" countries such as China. Mineral oil taxes are also a factor influencing fuel prices. However, as the Deputy may be aware, I did not increase taxation on motor fuels in the recent budget.
In respect of the tracking of petrol prices vis-à-vis diesel prices, the CSO’s national average price survey of these fuels for 2004 produced the results set out in the following table.
|
Unleaded Petrol |
Auto Diesel |
|
|
€ Litre |
€ Litre |
|
|
January 2004 |
0.894 |
0.826 |
|
February 2004 |
0.900 |
0.830 |
|
March 2004 |
0.897 |
0.825 |
|
April 2004 |
0.921 |
0.842 |
|
May 2004 |
0.984 |
0.864 |
|
June 2004 |
0.997 |
0.916 |
|
July 2004 |
0.975 |
0.905 |
|
August 2004 |
0.990 |
0.918 |
|
September 2004 |
0.985 |
0.935 |
|
October 2004 |
0.981 |
0.939 |
|
November 2004 |
1.009 |
0.987 |
|
December 2004 |
0.970 |
0.962 |
The data show the price of diesel increased by more than the price of petrol during 2004 with the differential between the two narrowing as the year came to an end. While a number of factors have been advanced to explain the recent price developments, it is clear they were not driven by tax increases.
