Bernard Durkan (Kildare North, Fine Gael)
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Question 251: To ask the Minister for Communications, Energy and Natural Resources the action he has taken in conjunction with his EU colleagues to prevent speculation in the oil market resulting in increased costs to consumers, including the domestic and transport sectors, and with the objective of ensuring that current price reductions on the world markets are reflected in the prices charged to consumers at petrol pumps and in respect of home heating; if his attention has been drawn to the position maintained by OPEC that the exceptionally high prices over the past 12 months for energy are the result of speculation; and if he will make a statement on the matter. [40353/08]

Eamon Ryan (Dublin South, Green Party)
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The Irish oil industry is fully privatised, liberalised and deregulated and there is no price control on petroleum products in Ireland. Retail prices reflect global market price, transportation costs, Euro/Dollar fluctuations and other operating costs.

The continued global volatility in oil prices is a cause for considerable concern for the Commission and EU Member States. Speculation on the markets has been considered to be one factor that has played a role in amplifying price movements and increasing their volatility. A number of strategies are being pursued at EU level to improve the understanding of oil markets and to enhance the transparency of the market. Enhanced availability and quality of oil market data are critical to enhance market transparency and could help price volatility. The Commission is developing proposals to require weekly reporting of commercial oil stocks in the EU. The EU is also working to strengthen dialogue with key oil-producing countries.

In terms of passing on of price reductions in world markets to consumers, it is the case that the prices Irish retailers charge for oil products relate to the refinery price rather than to the price of crude oil. The refinery price for oil products varies with demand and does not always move in line with crude oil prices. There is a time lag between movements in crude prices and refined prices. The Euro/Dollar exchange rate is also a significant factor as oil is traded internationally in dollars.

The National Consumer Agency has specific responsibilities for protecting the rights of consumers. Responsibility for the National Consumer Agency (NCA) lies with my colleague, the Tánaiste and Minister for Enterprise, Trade and Employment and she has recently requested the NCA to undertake a survey on retail prices of petrol and diesel. I understand that the NCA will benchmark movements in prices in Ireland against those in other EU countries and will examine the frequency and timeliness in which changes in the wholesale price are being passed on to consumers.

The upward global trend in energy prices and the ongoing volatility generally reinforces the imperative for Ireland to reduce its dependence on fossil fuels and to use energy wisely and efficiently. The Government is committed to accelerated delivery of our ambitious targets for renewable energy and energy efficiency, which is essential to ensure a sustainable energy future for the economy and consumers. My Department is working with other key Government Departments on initiatives to accelerate the deployment of renewable energy in electricity, transport and heating, and to implement major energy efficiency and demand management programmes for both domestic and business consumers.