Petrol retailers’ margins and stock costs
The Minister said he had approved a 2.13 pence-per-gallon margin increase on the Prices Commission’s recommendation and would take no further steps for now. He declined to promise compensation for stock costs or confirm figures on multinational ownership of retail outlets, saying future applications would be considered on their merits.
asked the Minister for Trade, Commerce and Tourism if he is aware of the difficulties being experienced in different parts of the country by petrol retailers at this time; and if he proposes to take any steps to deal with the matter.
Comment on this
In accordance with the recommendation of the National Prices Commission, I allowed an increase of 2.13 pence per gallon, excluding VAT, in the retailers' gross profit margin on petrol, with effect from 1 March 1983. I do not propose to take any further steps in the matter.
Comment on this
Would the Minister agree that in certain areas around the country at this time petrol retailers are having a very lean time? Would he agree that it would be necessary to give retailers, because of the huge costs involved in holding stocks, a small increase every time the price has risen generally?
Comment on this
As the Deputy will appreciate, I am mainly guided by the recommendations of the National Prices Commission with regard to applications of this nature. The last application was complied with. I might add that there was considerable agitation before the recent March increase was given, but since then I have had no representations whatsoever from the retailers.
Comment on this
One final supplementary. Is there any substance in the rumour going around in these circles at this time that it is being contemplated to allow unrestricted price structuring in the retail petrol trade?
Comment on this
A question is tabled on the subject matter of decontrol of petrol prices and I shall be answering the Deputy's question shortly.
Comment on this
Would the Minister agree that, given the fact that about 40 per cent of the retail trade is controlled by the multi-national oil companies and that in those retail outlets there is a particularly large turnover involved, it is inappropriate that those multi-national owners of the large retail outlets should be given the same percentage as the small retailers to whom Deputy Flynn has referred?
Comment on this
I do not necessarily accept the figures quoted by the Deputy. In fact, there have been a number of misleading statements made with regard to the control of oil products.
Comment on this
The 2.13 pence granted to retailers recently did not take into consideration any question concerning stocks. Would the Minister be prepared to include in the next price increase an element in respect of the stocks which necessarily must be held over at enormous expense by these people?
Comment on this
I am sure that the Deputy would agree that it would be very unwise of me to give a blank cheque during supplementary questions in the Dáil——
Comment on this
——on the particular approach taken, not only by me but by the National Prices Commission, in regard to future applications which may be made concerning this.
Comment on this
On a point of order, would it not be in order for me to ask a question? The Minister referred to a figure which I gave as one which he did not accept. I wished to ask him to clarify the position, purely on a point of information. I know exactly what the Minister is saying.
Comment on this
That is not a point of order, Deputy. Secondly, the number of supplementary questions which may be allowed is at the absolute discretion of the Chair.
Comment on this
The Minister mentioned that the figure of 40 per cent to which I referred as being controlled by the multi-national companies was not one which he would accept. Would he give me some notion of the correct percentage of outlets held by the multi-nationals, if it is not 40 per cent?
Comment on this
The Deputy will recall that what I said was that I do not necessarily accept the figures which were given, that there have been a number of speculative figures given in the recent past on the question of control in pricing of oil products. In view of that, I am sure the Deputy would accept that it would be very unwise of me to accept figures which are casually mentioned in the House.
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