Written answers

Wednesday, 10 December 2008

Department of Enterprise, Trade and Employment

Fuel Prices

10:00 pm

Photo of Brian O'SheaBrian O'Shea (Waterford, Labour)
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Question 109: To ask the Tánaiste and Minister for Enterprise, Trade and Employment her views on recent EU figures which suggested that consumers here are being charged up to 20% more for diesel and petrol; the steps she will take to ensure that consumers receive fair treatment in regard to petrol and diesel prices; and if she will make a statement on the matter. [44903/08]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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I assume the Deputy is referring to the recent Consumer Petroleum Price Products Survey, which was published by the Energy and Transport Directorate General of the European Commission. The latest survey, which relates to retail prices on 1 December, states that retail prices are higher in Ireland than in most other EU member states. However, concerns have been raised about the methods used by member states to collect the price information on which the survey is based. These concerns are shared by my colleague, the Minister for Communications, Energy and Natural Resources, whose Department is responsible for forwarding this country's price information to the Commission. The Commission is aware of the need for greater transparency in the reporting and presentation of oil price statistics across member states. In October, the Commission issued a comprehensive questionnaire to member states to survey the collection of prices published in its weekly bulletin. The purpose of the survey was to assess the methods of collection used by member states with a view to harmonising price reporting and removing reporting discrepancies between member states. The Department of Communications, Energy and Natural Resources is actively engaging with the Commission to ensure that the shared aim of more transparent reporting can be achieved. An illustration of the difficulties with the Commission's current system of reporting retail prices is the fact that the Commission's latest survey shows that the average retail price of petrol in Ireland on 1 December was €1.156 per litre, whereas the average price according to a number of domestic fuel information websites is only €1.02 per litre.

The Deputy may be aware that following widespread concerns earlier this year that the benefits of the decline in the wholesale price of oil were not being passed on to consumers, I asked the National Consumer Agency to undertake a survey into the underlying reasons pump prices for petrol and diesel had not fallen in line with the drop in the wholesale price of oil. As part of its work, the agency is benchmarking movements in prices in Ireland against those in other EU countries. It is examining the frequency and the timeliness with which changes in the wholesale price are being passed on to consumers. The agency has been conducting surveys of retail prices throughout the country. It is engaging in a series of meetings and contacts with, inter alia, the main distributors and the Department of Communications, Energy and Natural Resources. While the average retail price of petrol and diesel is just over €1 per litre, which represents a considerable reduction from the much higher prices of the summer, it is particularly important in these difficult economic times to ensure that the benefits of the dramatic decline in wholesale fuel prices are passed onto consumers and businesses to the greatest extent possible. It was for this reason that I asked the National Consumer Agency to undertake a survey on this matter. I look forward to receiving the agency's report, which I understand will be finalised in the coming weeks.

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