asked the Minister for Industry, Commerce and Energy if he will make a statement to the Dáil concerning the alleged request by him to the Irish petroleum companies to reduce their retail price levels arising from exchange rate changes and their increased levels of profits.

I requested the Irish oil companies to reduce their prices arising from the improvement in the exchange rate of the pound sterling. As announced by me on 3 November 1978 the companies were unwilling to reduce their prices, and accordingly, I made an order putting into effect a reduction of ½p per gallon in the companies' prices for all oil products as and from Saturday, 4 November 1978. As indicated in the announcement of 3 November, I decided that the reduction of ½p per gallon in the wholesale price of petrol should be given to petrol retailers to provide reasonable margins for these traders in accordance with a recommendation of the National Prices Commission in June last.

Is the Minister of State satisfied that the reduction of ½p is the maximum that could have been put through at that time? It would appear that a larger reduction was possible. Was that in line with his request to the companies?

The companies did not volunteer to reduce prices and the Minister had to make a decision on it. This indicates the size of the reduction would have been well and truly considered.

Was the size of the reduction based on that request? What was the basis of the reduction?

It was based on the calculation in the Department.

On the dollar-pound relationship?

Yes.

15.

asked the Minister for Industry, Commerce and Energy if the oil companies will reduce oil prices as a result of changes in the value of the dollar; and if he will make a statement on the matter.

The oil companies were unwilling to reduce their prices to take account of the appreciation of sterling vis-á-vis the US dollar and I made an order putting into effect a reduction of ½p per gallon in the companies' prices for all oil products as and from Saturday, 4 November 1978.

What further arrangements have been made with the companies if the dollar continues to depreciate?

The Deputy can be assured that this will be an on-going process and that the Minister and the Department will keep in close contact with the oil companies.

Why could not the public have benefited from the exchange rates?

By recommendation of the National Prices Commission last June, the petrol retailers were to expect a reasonable margin for their efforts and the ½p was passed on to them.

Why were the oil companies not requested to give retailers a bigger price margin?

They are now giving the retailers a bigger price margin.

The reduction in the price of oil consequent on the variation in the exchange rate of the dollar should have been passed on to the public. I am asking the Minister of State why the oil companies were not asked to give a bigger price margin to the retailers because this ½p reduction should have been passed on to the public.

If the recommendation of the National Prices Commission had been acted on in June last it would have meant an increase of ½p on the price of a gallon of petrol. This was postponed. Because of prevailing circumstances, the ½p is now being given to the retailer.

When the price increases the public have to pay, but when it is reduced they do not get the benefit.

16.