Oireachtas Joint and Select Committees

Wednesday, 4 May 2022

Committee on Budgetary Oversight

Stability Programme Update 2022: Minister for Finance

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I am confused by what the Deputy said. We have targeted measures, which are aimed particularly at those at greatest risk of fuel poverty. The Deputy made a point about a prolonged effect of a change in energy pricing. As he knows, in our document, we outlined other scenarios that could take place that would see an increase in energy prices of between 50% and 75%, and the impact that could have on inflation. In an earlier exchange, I said that could lead to an increase in inflation of between one and two percentage points, depending when that happens. I ask Mr. McCarthy to inform the committee of our view on the energy component of that increase. My understanding is that there is an increase of between 50% and 75% in the cost of gas and oil.

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