Tommy Broughan (Dublin North East, Labour)
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Question 85: To ask the Minister for Transport his views on the operation of the transport liquid fuels market; if he has had contact with the National Consumer Agency, any of the transport liquid fuels providers or their industry representatives on the operation of the transport liquid fuels sector; his views on measures to address alleged dysfunctionality in the transport liquid fuels market or to address deficiencies in the powers of the Competition Authority as outlined to the Joint Committee on Transport by the authority chairman; if he has liaised with the Department of Enterprise, Trade and Employment on this matter; and if he will make a statement on the matter. [39831/08]

Noel Dempsey (Meath West, Fianna Fail)
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Diesel and oil prices are not subject to price controls in the State. These prices are determined by the international oil commodities markets and influenced by supply considerations, economic growth in the major consuming economies, exchange rate volatility, market speculation and production and refining costs. In a market with fluctuating oil prices, there is usually a time lag between the prices quoted on international markets and prices available at the pumps. In the case of falling oil prices, there is a time lag for the lower prices to be passed on to customers as suppliers have to sell the oil they purchased at a higher cost before reducing prices.

I understand from the Tánaiste and Minister for Enterprise, Trade and Employment, Deputy Coughlan, that the National Consumer Agency has initiated a price survey on the costs of fuel. The survey is intended to ascertain whether oil companies are passing on savings on oil prices internationally and whether petrol and diesel pump operators are subsequently passing those savings on to consumers in a timely manner. I understand the agency's work in this area is well under way and that it is expected to present its report to the Tánaiste next month. I also understand from the Minister that the Competition Authority's enforcement powers are just one of the many issues being considered as part of the ongoing review of the operation and implementation of the Competition Act 2002.

The Deputy may wish to contact the Tánaiste and Minister for Enterprise, Trade and Employment directly for further information in regard to these matters.

Tommy Broughan (Dublin North East, Labour)
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Irish consumers are the most ripped-off in Europe in terms of fuel prices, including petrol, diesel and home heating oil. The European Commission recently reported that petrol prices in this State are 11% higher than the European average, diesel prices are 20% higher and home heating oil is 13% more expensive.

The Minister referred to the explanation by the wholesale and retail oil businesses that when prices go down, they cannot follow because they have purchased their oil stocks at the higher rate. Why does this not happen in reverse? That was the question asked by every caller to a recent episode of Joe Duffy's radio programme. Callers referred to the outrageous prices charged throughout the State — as high as €1.29 or €1.30 per litre of petrol — at the same time as the price of oil was plunging to $60 per barrel. Does the Minister agree there is a fundamental problem in this regard?

The Minister referred me to his colleague, the Tánaiste and Minister for Enterprise, Trade and Employment. I do not know whether the Minister, Deputy Dempsey, bothers to read the minutes of meetings of the Joint Committee on Transport. If he read the minutes of a recent meeting, he would know that Mr. Bill Prasifka, the chairman of the Competition Authority, told the committee that he has no power to order a forensic study of a business such as the oil industry. He does not have that power because everything is couched in terms of the criminal law. If he orders an investigation, he might prejudice a criminal case. Does the Minister agree, therefore, that the legislation underpinning the Competition Authority is fundamentally flawed? The Minister is standing idly by as consumers are ripped off.

Noel Dempsey (Meath West, Fianna Fail)
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I do not have direct responsibility for the Competition Authority.

Tommy Broughan (Dublin North East, Labour)
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Did the Minister know this was the case?

Noel Dempsey (Meath West, Fianna Fail)
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I am wondering why this question was put to me.

Tommy Broughan (Dublin North East, Labour)
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Do vehicles run on air?

Noel Dempsey (Meath West, Fianna Fail)
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If I had any control over which questions are submitted, this one would not have got through because it is not relevant to my area. As an ordinary consumer, I am aware of the variations in the price of oil versus the price charged at the pumps. The price of oil peaked on the international commodity markets last July at approximately $147 a barrel and is now trading at approximately $65. The price at the pumps was approximately €1.43 per litre at the time of the peak in prices, reducing to €1.33 in late July and to €1.13 or €1.14 at this stage. Therefore, there has been some movement. As a motorist, I would be delighted to see immediate falls in prices and would certainly be displeased to see immediate increases. However, it is a matter for the consumer.

Tommy Broughan (Dublin North East, Labour)
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The Minister's answers are unbelievable and scandalous. All vehicles run on fuel and the cost of the input is of vital importance. Is the Minister concerned by the impact on public transport providers, including taxi drivers, bus operators and so on, of the increase in fuel prices? Is he concerned by the impact of increases on our two major airlines, Ryanair and Aer Lingus? Did the Minister have any input into the imposition of the new air travel tax? Did he give the Minister for Finance any guidance in this matter?

Brendan Howlin (Wexford, Labour)
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That is well beyond the scope of the question, as the Deputy well knows.

Tommy Broughan (Dublin North East, Labour)
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It is not.

Noel Dempsey (Meath West, Fianna Fail)
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I do not know what the Deputy finds unbelievable in my response. I have quoted the prices from last July to the present. Perhaps the Deputy has a difficulty, as I sometimes suspect, in believing facts.

Tommy Broughan (Dublin North East, Labour)
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I have a difficulty in believing the Government.

Noel Dempsey (Meath West, Fianna Fail)
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I am concerned by any rise in petrol and diesel prices. In particular, I was anxious to avoid increases in diesel prices in the recent budget. The Government took my views on board in this regard and did not increase the price of diesel, because of the knock-on effects that would have for the transport sector generally. I am concerned by increased fuel costs for airlines.

Tommy Broughan (Dublin North East, Labour)
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What about the impact of air travel taxes?

Noel Dempsey (Meath West, Fianna Fail)
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However, neither I nor the Government controls the price of oil. That is true for Governments throughout the world.