Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

I thank the Deputy. He is absolutely right. We have all seen it in the past couple of weeks, with the prices ticking up at the forecourts and going up every other day. We see it in the cost of home heating oil. As I mentioned earlier, it was €450 to fill a tank this time last year and it is closer to €700 now. We see it, of course, in the rising price of electricity.

We also all understand in this House that when it comes to fuel prices, we, as a nation, are price takers.

It is governed by the international price of a barrel of oil, gas or coal, and we are price-takers in that regard. What we can do is provide a welfare package in the budget helping those on fixed incomes, take action on the fuel allowance, provide for pay increases where they can be afforded - it is important that they happen - and also provide a tax package to make sure people retain those pay increases and do not lose most of them in USC, income tax and PRSI.

In terms of regulation, of course the regulator has a role to play but it cannot reduce the price of oil on the international markets or the price of gas coming from Russia. If those prices go up, prices go up here. That shows the long-term challenge we face in moving away from oil and gas to renewable fuels, the price of which can be much more steady, or at least we expect it will be.

As I mentioned, gas prices have now been rising steadily since March 2021 for a variety of international and geopolitical reasons and are currently unreasonably high, putting upward pressure on wholesale electricity prices. This is not only affecting Ireland; it is affecting other EU member states. It will be discussed at this week's meeting of European energy ministers in Slovenia. The Minister for the Environment, Climate and Communications, Deputy Eamon Ryan, is there at present.

It should be emphasised, however, that international wholesale energy prices are not expected to stay at this high level indefinitely. Mindful of this, the Government provides extensive supports for households in terms of energy costs via welfare schemes. For example, there are specific schemes aimed at those at risk of energy poverty, including the household benefits package and the fuel allowance. A review of the implementation of the strategy to combat energy poverty will be completed this year. Alleviating energy poverty will be a key consideration for the national retrofit framework, which will also be published later this year.

The living alone allowance was increased in budget 2021. This is a very important allowance helping people who are living alone who often have to bear, on their own, the cost of heating an entire house. Ministers are considering the possibility of a further increase in the budget. When it comes to the carbon tax, it is important to bear in mind that the proceeds of any increase in the carbon tax will be ring-fenced for climate action, to protect those most exposed to higher fuel and energy costs, to support a just transition for displaced workers and to invest in climate action.

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