Written answers

Tuesday, 17 June 2008

Department of Enterprise, Trade and Employment

Price Inflation

11:00 pm

Photo of Pádraic McCormackPádraic McCormack (Galway West, Fine Gael)
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Question 521: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if the reason the price of oil is increasing has been investigated in view of the fact that the value of the dollar is decreasing; and if she will make a statement on the matter. [23219/08]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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The Deputy will be aware that since the beginning of the year the wholesale price of oil has increased considerably. This increase, which has been caused by a combination of strong demand, tight capacities and some market speculation, has led in turn to increases in the retail price of petrol, diesel and other fuels. At the same time as oil, which is priced in dollars, has been increasing in price, the Euro has been steadily appreciating in value against the dollar. This appreciation has helped to cushion consumers in the Euro area, including Irish consumers, from experiencing the full extent of the increases in the wholesale price of oil. In the absence of this favourable appreciation between the Euro and the dollar, Irish consumers would most likely be paying significantly more at the petrol pump.

Government policy in relation to prices, including the price of commodities such as petrol and diesel, is concentrated on the promotion of competition, consumer choice and awareness. There is no price control on these products and in common with most other goods and services price differences are an ongoing feature of the market economy. It is a matter for retailers to explain price differences where they occur and my Department encourages consumers to raise price concerns directly with retailers.

The Retail Price (Diesel and Petrol) Display Order, 1997 requires petrol stations to display their prices in a clear and prominent manner in order that consumers can make an informed choice. The Order enables consumers to readily compare prices and purchase their fuel on the basis of an informed choice. The National Consumer Agency (NCA) enforces this Order. Any infringements should be reported to the NCA.

It is important, therefore, particularly in times of rising oil prices, that consumers inform themselves of the prices being charged by different traders for fuel products such as diesel and petrol so that they can achieve the best value for their money. I am satisfied that the statutory Regulations in this area ensure that consumers are given the necessary price information to allow them to make informed choices when purchasing fuel.

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