Oil product price differentials
Bruton questioned why Irish consumers faced much higher tax-excluded oil prices and whether prices reflected falling crude costs. Burke disputed Bruton’s figures, noted price control was the Industry and Commerce Minister’s responsibility, and said the differential was under review, with no further details to add.
asked the Minister for Energy the reason the Irish public is paying up to 40 per cent higher tax-excluded prices for oil products; and the action, if any, he proposes to deal with this situation.
Comment on this
The question of price control is proper to the Minister for Industry and Commerce who continues to have responsibility for the legislation for price control, notwithstanding the discontinuance of the operation of price control itself. I understand that the industrial costs monitoring group, which are associated with the Department of Industry and Commerce, have expressed certain views on the petroleum price trends which have developed since formal price control was abolished in early 1986. As far as I am concerned, it is of the utmost importance that the benefit of lower crude prices is passed on to the ultimate consumers, both industrial and domestic. A number of public institutions have expressed the fear that this may not, in fact, be happening. I am more than ready to co-operate with the Minister for Industry and Commerce in any actions which he deems necessary to take in order to achieve this object.
Comment on this
Does the Minister accept that the public are paying up to 40 per cent more for their motor fuel and that the cost to the consumers is in the region of £90 million? As the Minister is responsible for energy, has he disentangled why energy prices are so much out of line here?
Comment on this
I am not prepared to accept the figures given by the Deputy. However, he can be assured that in consultation with my colleague, the Minister for Industry and Commerce who has primary responsibility for this price area, it is a matter which is kept under constant review. Not only are we concerned about this matter, the Central Bank and NESC have also indicated their concern about the differential and whether Irish consumers have been getting the benefit of the reduction in crude oil prices. We are not satisfied in this regard; we are monitoring it and trying to come to grips with the problem.
Comment on this
Does the Minister accept that in his role as being responsible for the strategic supply of energy it is essential he knows whether the price is sensibly related to spot prices? It is unacceptable to the House that the Minister for Energy cannot reply in detail in relation to the supplies we are securing and their costs.