Dáil Éireann Debate, Tuesday - 26 June 2012
115 Deputy Mattie McGrath asked the Minister for Communications, Energy and Natural Resources the measures he is taking to counteract the effects of the escalating price of fuel that is adversely affecting the economy; and if he will make a statement on the matter. [23979/12]
Amharc ar fhreagraI have no statutory function in the setting of energy prices, including petrol and diesel fuel prices, whether in the regulated or non-regulated market.
Energy policy objectives for Ireland and the European Union are delivering security of supply and reducing the impact of energy costs for consumers and business, through the development of renewable energy resources, enhanced energy efficiency and greater competition. National and EU energy policy objectives are also informed by the critical work of the International Energy Agency (IEA) on all aspects of energy supply.
The Government's energy efficiency and renewable energy programmes including the Biofuels Obligation are aimed at moving Ireland's economy away from reliance on imported, carbon intensive fossil fuels, which are subject to price volatility.
In the specific use of fuel, the Irish oil industry is fully privatised, liberalised and deregulated and there is free entry to the market. There is no price control on petroleum products and it has been the policy objective of successive Governments to promote price competition and consumer choice.
It is a fact that Ireland imports 100% of its fuel requirements mainly in the form of refined oil product. The main factor governing the price of fuel is the global price for oil and Ireland has no control over this cost.
Previous surveys have shown that prices, which Irish retailers charge for oil products, relate to the refinery price rather than to the price of crude oil but it is, of course, ultimately subject to the price of crude oil. The refinery price for oil products varies with demand and does not always move in line with crude oil prices. There is a time lag between movements in crude prices and refined prices. Prices at the pump, therefore, reflect global market price, which is volatile, transportation costs, euro/dollar exchange rate fluctuations and other operating costs as well as the impact of taxes on oil products. As the Deputy will appreciate the issue of taxation of fuel prices is a matter for my colleague, the Minister for Finance.
