John Cregan (Limerick West, Fianna Fail)
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Question 388: To ask the Minister for Finance the situation regarding the price of diesel; if he will track the price [i]vis-À-vis[/i] petrol at wholesale or retail level; the reason diesel has increased in price [i]vis-À-vis[/i] petrol; if the increasing price of diesel is mainly due to production prices, refining or taxation; and if he will make a statement on the matter. [1987/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Fuel prices are driven by a number of factors, including the price of oil on international markets, exchange rates, production costs and refining costs. The rise in oil prices over recent periods reflected additional factors such as geopolitical uncertainty, supply disruptions and strong economic growth in "catch-up" countries such as China. Mineral oil taxes are also a factor influencing fuel prices. However, as the Deputy may be aware, I did not increase taxation on motor fuels in the recent budget.

In respect of the tracking of petrol prices vis-À-vis diesel prices, the CSO's national average price survey of these fuels for 2004 produced the results set out in the following table.

The data show the price of diesel increased by more than the price of petrol during 2004 with the differential between the two narrowing as the year came to an end. While a number of factors have been advanced to explain the recent price developments, it is clear they were not driven by tax increases.