Joe Costello (Dublin Central, Labour)
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Question 49: To ask the Tánaiste and Minister for Enterprise, Trade and Employment her views on requesting the National Consumer Agency or the Competition Authority to conduct an investigation into the cost of diesel which is significantly more expensive than petrol; and if she will make a statement on the matter. [23927/08]

Bernard Durkan (Kildare North, Fine Gael)
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Question 55: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which she has examined the increasing disparity between petrol and diesel prices at filling stations; if she has inquired of the oil companies as to the reason the more eco-friendly diesel should be costing more in view of the fact that traditionally diesel has been the cheaper fuel; if she has been given any logical reason for the price change; if her attention has been drawn to the severe damage expected to be caused to the transport and haulage industries and the economy generally if the present trend continues; the precise cause or causes; her proposals to address the issue; and if she will make a statement on the matter. [23936/08]

Bernard Durkan (Kildare North, Fine Gael)
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Question 118: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the plans she has either unilaterally or with her EU colleagues, to address the spiralling price of oil; her views on whether market manipulation or speculation has been a contributory factor in the increasing price; and if she will make a statement on the matter. [24221/08]

Bernard Durkan (Kildare North, Fine Gael)
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Question 126: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the action she proposes to take to address the issue of the increased cost of motor fuel and its expected consequences in respect of the price of consumer goods arising from the impact on the transport sector; and if she will make a statement on the matter. [24229/08]

Mary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 49, 55, 118 and 126 together.

The retail price of all carbon fuels, including diesel, has increased significantly in recent months. This essentially reflects the considerable increase in the global wholesale price of oil.

As the Deputies are aware the Irish oil industry is fully privatised, liberalised and deregulated. There is free entry into the market, and prices at the pump for both petrol and diesel reflect market factors notably global market price, transportation costs, Euro/Dollar fluctuations and other operating costs.

In so far as the relativity between the price of diesel and petrol is concerned, traditionally, diesel has been less expensive than petrol at the forecourts in Ireland. This was due to the fact that the international prices for both products were previously at a similar level, and excise duty was and is lower on diesel. European production was also closely matched to demand for both products. The international price of diesel has however increased relative to petrol for a number of reasons, including:

Demand for diesel is rising both within Europe and in China and other rapidly-developing economies world-wide. According to the March and April International Energy Agency (IEA) Oil Market Reports, Europe has been experiencing lower imports of distillates from the US and elsewhere as cargoes have been diverted to Latin America, South Africa and the Middle East.

The increased demand for aviation fuel (which comes from the same part of the barrel as diesel) is also a contributory factor.

European refineries are unable to keep pace with the demand for diesel. Each barrel of oil can only produce a certain percentage of diesel, and European diesel demand now exceeds production. This means that diesel has to be sourced from further afield, particularly from Russia, thus affecting price.

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.

The Retail Price (Diesel and Petrol) Display Order, 1997 requires petrol stations to display their prices in a clear and prominent manner so 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 enforces this Order.

In so far as the Competition Authority is concerned, the Authority is the body with responsibility for ensuring that traders do not engage in anti-competitive practices.

I note that Deputies have suggested that investigations should be carried out in relation to the global increase in fuel prices, by bodies such as the Competition Authority and the National Consumer Agency. I am not clear as to the nature of any specific investigation that either the Agency or the Authority could usefully carry out in this area given that wholesale prices have risen mainly due to international factors caused by a combination of strong demand, tight capacities and some market speculation. Should the Deputies have any evidence of traders selling fuel products engaging in anti competitive practices, they should bring this evidence to the attention of the Authority who will take the necessary action as it has done in the past.

The upward global trend in oil prices reinforces the imperative for Ireland to reduce its oil dependency and to use energy wisely and efficiently. The Deputies will be aware of the actions being taken by Government to accelerate delivery of our targets for renewable energy and energy efficiency which are essential to ensure a sustainable energy future for the economy and consumers.

In so far as the transport and haulage industries are concerned, I understand that my colleague Minister Noel Dempsey, as Minister with primary responsibility in this area, will shortly meet with the Irish Road Haulage Association to discuss rising fuel prices, particularly diesel prices, and their effects on their members.

It is clear, therefore, that rising fuel prices present a significant challenge for consumers, businesses and indeed for the whole of our society. It is important that as a society we all face and play our part in meeting this challenge. I would wish to assure the House that the Government, through the pursuit of prudent policies and in conjunction with the work of dedicated agencies such as the National Consumer Agency and the Competition Authority, will play its part in seeking to ensure that the interests of all sectors of our society and of the economy as a whole will not be impacted unduly by the ongoing effects of rising fuel prices.