Dáil Éireann Debate, Thursday - 26 January 2017
200. Deputy Carol Nolan asked the Minister for Communications, Climate Action and Environment the reason the price of diesel is increasing despite the fact that the price of crude oil is decreasing; and if he will make a statement on the matter. [3595/17]
Amharc ar fhreagraThe Irish oil sector is completely privatised, liberalised and deregulated. There is free entry into the market and it is Government policy to encourage price competition and consumer choice. As such, I have no function in the setting of fuel prices.
The retail price of diesel is determined by a number of factors, and not just the price of crude oil. One of these is the price of the product in the international marketplace. As oil is traded exclusively in US Dollars, the strength/weakness of that currency against the euro is a factor in the price paid by the end consumer.
In addition, crude oil has to undergo several stages of production before it is refined into diesel for use in vehicles. The cost of that process is also a factor in the end price paid. Finally, levies and taxes, such as excise duty, environmental taxes and VAT, make up about 60% of the retail price.
The Competition and Consumer Protection Commission (CCPC, under the aegis of the Minister for Jobs, Enterprise and Innovation) has a role in ensuring that the market is functioning correctly and that consumers are not being disadvantaged. Previous investigations and surveys into oil prices (available at www.ccpc.ie) that the CCPC have undertaken indicate that the price paid by consumers is largely determined by the internationally traded price of crude oil, the consequent price at which refined product is traded in Europe, and taxation levels, along with the level of competition in the retail market.
The European Commission maintains a Statistics and Market Observatory, which presents consumer prices for petroleum products in EU Member States (known as the Oil Bulletin) on a weekly basis. The Oil Bulletin is designed to improve the transparency of oil prices and to strengthen the internal market. The relevant link is: http://ec.europa.eu/energy/observatory/oil/bulletin_en.htm.
The latest bulletin from 16 January 2017 shows that diesel prices (including taxes) in Ireland were €1.279 per litre. The EU average for this period was €1.242, with the price paid in the United Kingdom listed at €1.39.
