The Government blames oil prices for the energy crisis. The facts do not support the Government's argument that the hike in the price of the barrel of oil is the main cause of skyrocketing petrol, diesel and home-heating costs. This argument is wrong and misleading and I will explain why. In 2008, the cost of a barrel of oil was $162, the cost of a litre of petrol was €1.30 and a litre of diesel was €1.42. Today, the cost of a barrel of oil is $93, which is 74% lower than in 2008, but the cost of a litre of petrol is €1.74 and the cost of a litre of diesel is €1.64. If the price of a barrel of oil is 74% lower, why are Irish consumers paying 34% per litre more? As I said, in 2008 the price of a barrel of oil was $162. Today, the cost of a barrel of oil is $93 yet the Government is saying the cost of the barrel of oil is the cause of high fuel prices.

The carbon tax was first introduced in 2009 by Fianna Fáil and the Green Party. Carbon tax is the real reason for the increase in fuel prices and the pressure on people in terms of heating their homes. The hauliers and the farmers came here to protest but the Government has done nothing to support them. The price of oil is cheaper now than in 2008. The Government's percentage model on taxes is costing every household more. The Government needs to give the real facts and tell the public the problem is being caused by the carbon tax first introduced by Fianna Fáil and the Green Party in 2009. That is a fact. I am not making this up. People can Google it and they will see it for themselves. These are facts. The price of the barrel of oil is $69 cheaper today than it was in 2008. The Government is telling the people who are going hungry and who are cold in their homes that the problem is the price of the barrel of oil. It needs to stop giving misleading evidence to this House.

I would have to disagree with the Deputy. Let us deal with 2022, not 2008, which is a long time ago and there was a different economic situation.

It is about the cost of a barrel of oil.

I did not interrupt the Deputy.

The Taoiseach does not like to hear it.

The bottom line is this. We all know the current cause of the inflationary cycle is global. Oil and gas prices have risen dramatically. Two and a half months ago, on 1 December, the cost of the barrel of oil was $68. Do you agree?

Yes.

It now costs $93 or $94. That clearly is a dramatic increase in a number of months, which the Central Bank and Europe are saying is a pandemic-related cycle of inflation.

It is a con job.

Natural gas costs £1.65 per therm on international markets, compared with 42 pence per therm last February. Higher gas prices have pushed up electricity costs as gas was used to generate half of this country's electricity last year. The latest CSO data on wages shows that average weekly earnings rose 5.4% in quarter 3 of 2021 from a year earlier and were up to 8.9% from their pre-pandemic levels in quarter 3 of 2019, which is contrary to much of what has been said here in the past number of weeks. That said, added to the energy issues, quantitative easing to respond to the pandemic globally is a factor. As we emerge from Covid, the fact that supply has not met demand in terms of products manufacturing and the supply chain and blockages, which were real but are easing somewhat now and we hope will ease further throughout 2022, are the causes of the current cycle of inflation.

To suggest that it is just carbon tax is simply not the truth. The story with the carbon tax is that we are giving the money back to the public in the form of the retrofitting scheme, where we will enable people to retrofit their homes which will lead to cheaper fuel costs into the future. We are giving money from the carbon tax to farmers for environmentally friendly farming programmes.

Additional income streams for farmers will arise from the distribution of carbon tax revenues. To protect against fuel poverty for those on low incomes and those depending on the fuel allowance, it enables us to make more generous provision in those areas, as we have done in the last budget and in the most recent package in terms of those in receipt of the fuel allowance.

The Government is robbing Peter to pay Paul.

The reality is that over the next decade or so, we will be moving more towards renewables. We will always need gas for the foreseeable future as a transitional fuel, but we will have to increase our renewable capacities into the future. Of that, there is no doubt. The current Ukrainian-Russian crisis illustrates that for Europe, not just for Ireland, more than anything else. It has caused a lot of instability in more recent times.

I will give the Taoiseach some facts. He said not to worry about 2008. In 2008, we were paying €6.44 per gallon of diesel. In 2022, we are paying €7.46 per gallon. In 2008, the cost of a gallon of petrol was €5.90. In 2022, we are paying €7.89. The current price of a barrel of oil is $93. It was $162 back then.

The Taoiseach spoke about retrofitting. Does he realise what retrofitting is? Since the announcement of the retrofitting scheme, the price of insulation has gone up by 17%. The Government has put in place a grant process, which is grand, but the cost of labour has gone up and the cost of materials has gone up. Retrofitting in terms of insulation and steel is oil based. All the Government has done in terms of the introduction of the retrofitting scheme is drive inflation through the roof because there is a lack of supply. I know that because I am a contractor. I see it every day.

The Government is so out of touch that it has increased inflation with the retrofit scheme. The grants should be increased with inflation. Let us take the example of a retrofit that costs €50,000 with €23,500 put in by the Government. If the cost of that retrofit goes to €70,000, the Government should bring its investment up to €35,000. That is how to deal with the issue. The Government has destroyed this country with inflation and tax.

First of all, the retrofitting scheme has not started yet.

We know that.

The Government has no money.

We have the money and it has been allocated. The retrofitting scheme clearly has not affected the current pandemic cycle of inflation.

It has.

I ask the Deputy to calm down. There is no need to be roaring about the issue. The bottom line is that in 2021, the country spent €6.2 billion on imported fuels compared with €3.4 billion in 2020. We spent €6.2 billion on imported fuels in 2021 compared with €3.4 billion in 2020. That is a €2.8 billion increase in the bill for imported fuel, largely reflecting higher prices on international markets. We spent an additional €1.5 billion on imported oil and an extra €1 billion on imported gas last year.

More tax is being charged.

The Deputy cannot deny the global nature of this.

More tax is being charged.

During budget time, the Deputy is the first in the queue looking for higher investment in roads, rail and projects in his constituency, and greater social protection measures. There has to be a revenue base to pay for all of that.

Do we get those things?

More tax is being charged.

That is the reality. The revenue we generate relates to what we can do for society and for the public, more generally.

We have to live, too. We have to live.

We have to be transparent and straight up about this. There is no denying the global nature of this issue. We must take measures to try to help people alleviate the pressure.