Dáil Éireann Debate, Thursday - 5 June 2008
220 Deputy Pat Breen asked the Minister for Communications, Energy and Natural Resources his views on the high cost of oil and the affect that this continuing hike in prices is having on the Irish economy; his views on whether the application of the improved rate of exchange namely the differential between the US Dollar and the Euro is being passed on to the Irish consumer; and if he will make a statement on the matter. [22409/08]
Amharc ar fhreagraThe price of oil is set on international markets, and is outside Ireland's direct control. The Irish oil industry is fully privatised, liberalised and deregulated. There is free entry into the market. Prices at the pump reflect global market price, transportation costs, Euro/Dollar fluctuations and other operating costs. Crude oil prices have recently reached record levels and this is reflected in the prices of oil products.
The Competition Authority is a statutory independent body with a specific role in the enforcement of competition law. The National Consumer Agency has specific responsibilities for protecting the rights of consumers. Their function is to ensure that competition works optimally for the benefit of consumers throughout the country.
Ireland's high dependence on imported oil makes us price takers, sensitive to the volatility of the markets and reflecting a range of market factors.
The increase in the price of petrol and diesel is affecting all of Europe. EU price figure comparisons, published on 26th May 2008, show that the average price of petrol in April in Ireland was €1.21 per litre and this ranks as the seventh cheapest of 27 Member States. The average price of petrol in the UK in the same report was €1.42 per litre and the EU average price was €1.41 per litre. The average price of diesel in Ireland in April as reported by the EU on 26th May was €1.25 per litre. This price ranks as the seventh cheapest price out of the 27 EU Member States reported by the EU on that date. The average price of diesel in the UK in the same report was €1.56 per litre and the average EU price for diesel was €1.42 per litre. These comparisons show that Ireland is by no means the worst affected country in Europe in relation to the prices of petrol and diesel.
It is also the case that the increase in the price of oil generally, for both petrol and diesel, would be even higher for the consumer if the effect had not been moderated to date by the sharp depreciation of the dollar against the Euro. This is particularly clear when recent price increases for a barrel of oil are compared with relative increases in diesel and petrol prices.
Government policy on prices, including the price of commodities such as petrol and diesel, is concentrated on the promotion of competition, consumer choice and awareness. Petrol stations are required to display their prices in a clear manner, so that consumers can make an informed choice when purchasing fuel. Consumer protection is a matter for the Department of Enterprise, Trade and Employment, and consumers can report any infringements of the law to the National Consumer Agency.
The upward global trend in oil prices reinforces the imperative for Ireland to reduce its oil dependency and to use energy wisely and efficiently. The actions we are taking to accelerate delivery of our targets for renewable energy and energy efficiency are essential to ensure a sustainable energy future for the economy and for consumers.
