Oireachtas Joint and Select Committees
Wednesday, 23 March 2022
Joint Oireachtas Committee on Transport, Tourism and Sport
Fuel Prices: Discussion
Mr. J.J. Kavanagh:
The Deputy asked how the variation would work. The variation would work very simply. Take an average, for instance last year when the average price was running at about €1.20 per litre. On a monthly basis thereafter, with any differential in price there would be a variation and that would be reimbursed to the operator, in part or in whole I presume, because otherwise the contract would be unviable. It is a very simple mechanism that is already there. The provision is there with the NTA for Local Link, for example. They took 20% of the running costs of the contract price as the fuel costs. They then took 23% of that and awarded it to the operator.
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