Oil stocks held pending price increases
O’Leary asked whether companies were withholding oil until price increases were approved. O’Malley said stock reporting had become more frequent and detailed, spot checks found no discrepancies, and stocks were below normal; he was satisfied there was little opportunity to hold supplies back. Members disputed the adequacy of monitoring and argued that higher prices should not apply to existing stocks.
asked the Minister for Industry, Commerce and Energy the steps it is proposed to take to ensure that oil and petrol purchased by the oil companies at one price are not held by them until application for price increases are granted thus causing artificial shortages.
Comment on this
The reporting of oil stocks held by the oil companies has been stepped up from monthly to weekly intervals and such reports are being given in much greater detail than heretofore. Moreover, spot checks of stocks held at the oil terminals and elsewhere over the Easter period revealed no discrepancies.
I am satisfied, therefore, that there is little or no opportunity for the oil companies in this country to hold supplies in stock in anticipation of price increases. My concern at the moment is that stocks are at rather low levels and I have asked the oil companies to replenish them.
Comment on this
Is the Minister aware that when stocks are taken out of any oil depot a daily check has been kept in recent years by the ordinary excise staff of the Revenue Commissioners? The full details of existing stocks in depots and daily output is rigorously recorded. All the nonsense the Minister is going on with is rejected by the oil and petrol workers.
Comment on this
So far as we know there is no guarantee that a company may not withold supplies until a price application is granted. Can the Minister assure the House that this is not the case?
Comment on this
The stocks which we hold at the moment are less than what would be the normal stocks because of the run on them. I suppose that ideally one should ask the companies to run down their stocks as much as possible before an increase takes place but that is not feasible commercially. It cannot be done. I would be happy enough as long as there were not excessive stocks awaiting a price increase.
Comment on this
The Minister is confusing the question. It is not a question of running down stocks. It is a question of charging a higher price for existing stocks before they are replaced by new stocks. The Minister is deliberately confusing that. We are concerned that no additional price should be charged until the stocks at present there have been exhausted and replaced by new stocks, which is precisely what in opposition the Minister kept pressing on our Government.