Oireachtas Joint and Select Committees

Wednesday, 23 March 2022

Joint Oireachtas Committee on Transport, Tourism and Sport

Fuel Prices: Discussion

Mr. Eugene Drennan:

The Deputy has got that right. We have an essential user rebate in place. It is very small and does not reflect anywhere near should be at. It was negotiated in 2008 and came in during 2010. It now needs to be aligned with what would give us a reasonable return for the periods of spikes. We are well aware that there are three parties to this, and that the customers has to take up their share but nobody could keep up with the spikes that are there now. With Ireland being the furthest distance from Europe, and the west and south coast being further again, we must have the supports that would enable us. In the round, there is too much hanging off the price of a litre of fuel. We have added too much on with carbon tax, the National Oils Reserves Agency, NORA, levy, additives and all of that. Ireland is uncompetitive on the rebound journey. We are out of sync with every other country. It pear-shapes our markets and it cuts our competitiveness. Ireland has just come through Brexit, which is still really upsetting the flow of our business and profit profitability for anybody doing the UK routes, plus the timeline that feeds in here. We need to recalibrate the essential user rebate for greening the industry and to have a reward for the country out of it, but also to keep us efficient. We put those proposals to the Government.

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