Michael D Higgins (Galway West, Labour)
Link to this: Individually | In context

Question 81: To ask the Minister for Communications, Energy and Natural Resources the steps he is taking, in view of the unprecedented increase in diesel prices here, to curb these increases; his proposals to ease the burden on the consumer; and if he will make a statement on the matter. [14666/08]

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 231: To ask the Minister for Communications, Energy and Natural Resources if he has had discussions with the regulator with a view to identifying the cause or causes for fluctuations between the prices of petrol and diesel; if he has sought an explanation as to the reason diesel is regularly more expensive than petrol having particular regard to the fact that diesel is more eco-friendly; and if he will make a statement on the matter. [14946/08]

Eamon Ryan (Dublin South, Green Party)
Link to this: Individually | In context

I propose to take Questions Nos. 81 and 231 together.

I have no function in relation to oil, diesel or petrol prices. The Irish oil industry is fully privatised, liberalised and deregulated. There is free entry into the market. Prices at the pump reflect global market price, transportation costs, Euro/Dollar fluctuations and other operating costs. The Competition Authority is a statutory independent body with a specific role in the enforcement of competition law. The National Consumer Agency has specific responsibilities for protecting the rights of consumers. Its function is to ensure that competition works optimally for the benefit of consumers throughout the country. The Commission for Energy Regulation (CER) is the independent body statutorily responsible for overseeing the liberalisation of Ireland's electricity and gas sectors. The CER has no role in regard to the oil industry. There are no proposals to bring forward measures to give the CER a role in regard to the Irish oil industry, given the roles and responsibilities of the Competition Authority and the National Consumer Agency.

Ireland's high dependence on imported oil makes us price takers, sensitive to the volatility of the markets and reflecting the combination of world prices and the relative strength of the Euro against the Dollar. According to the March and April International Energy Agency (IEA) Oil Market Reports, middle distillates, including diesel oil, reached new peaks in Europe in recent months due to weather-related demand and tight supplies, which have been exacerbated by low refinery throughputs. In the same period, Europe has seen lower imports of distillates from the US and elsewhere as cargoes have been diverted to Latin America, South Africa and the Middle East. The IEA also notes that US refiners have been producing substantially more barrels of petrol than usual and domestic US stocks have been well above their 5 year range. High stocks and low US prices are likely to have curbed flows of exports of petrol from Europe to the US, leaving Northwest European petrol stocks high. The combination of these market factors has contributed to the rise in diesel prices relative to petrol.

In an era of sustained high oil prices and concerns about supply, addressing our dependence on fossil fuel imports is a key imperative. The Government has committed to a range of actions in the Energy Policy Framework and the Programme for Government to break that dependency. In addition to accelerating the deployment of renewable energy in electricity, transport and heating, the implementation of wide ranging energy efficiency and demand management programmes are the major immediate priority. The roll out of the National Energy Efficiency Action Plan in the coming months will set out the Government's measures and programmes in detail. I am working with my colleagues, the Minister for Transport and the Minister for the Environment, Heritage and Local Government, to deliver a sustainable energy future across all sectors, including the transport sector. Improved public transport, sustainable infrastructure, and radical energy efficiency and demand management strategies are key to achieving a sustainable energy future for Ireland's citizens and the economy.