Oireachtas Joint and Select Committees

Wednesday, 17 November 2021

Committee on Budgetary Oversight

Inflation: Discussion (Resumed)

Dr. Niall Farrell:

On carbon tax, the vast majority of the increases in prices are internationally driven. On a litre of fuel, carbon tax accounts for around 10 cent per litre. The vast majority of the increase comes from the international price increases. Gas is similar. On whether this will last forever, the current projection is that the price being paid on international markets for delivery of gas in spring tends to fall back to what one would expect outside the current increases in fuels. Given what we know now, we would expect the prices the resolve around then. What happens in the longer term is predicated on how European supply channels become resolved.

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