Bernard Durkan (Kildare North, Fine Gael)
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Question 292: To ask the Minister for Communications, Energy and Natural Resources if his attention has been drawn to the extent to which diesel prices at the pumps are vastly higher than petrol prices; if an investigation has been undertaken to identify the cause of such disparities having particular regard to the fact that people are encouraged to switch to diesel as a more eco-friendly fuel but are being penalised by the oil companies; if steps are being taken or are expected to be taken to bring diesel prices at least back into line with petrol prices or lower as was previously the case; if he will use his influence at EU level to ensure that consumers here are not in any way victimised by such price structures; and if he will make a statement on the matter. [20529/08]

Eamon Ryan (Dublin South, Green Party)
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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. Their function is to ensure that competition works optimally for the benefit of consumers throughout the country. 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.

Traditionally, diesel has been cheaper than petrol in Ireland at the forecourts. This was due to the fact that international prices for both products were previously in the same range, and excise duty is lower on diesel. The excise differential in favour of diesel is 7.46 cents. Figures from the International Energy Agency (IEA) show that the international price of diesel is now higher than the price of petrol. This is because of increased demand for diesel both within Europe, and in China and other developing economies. European refineries are currently not able to keep pace with the demand for diesel, which means it must be sourced from further afield, particularly from Russia. Conversely, the IEA's reports show that US refineries have been producing 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 exports of petrol from Europe to the US, leaving North West European petrol stocks high. The combination of these market factors has contributed to the rise in diesel prices across Europe relative to petrol.