Written answers

Thursday, 12 March 2009

Department of Communications, Energy and Natural Resources

Fuel Prices

5:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 222: To ask the Minister for Communications, Energy and Natural Resources the efforts he has made or will make to bring fuel oil prices here into line with those countries with which Ireland competes for exports; and if he will make a statement on the matter. [10676/09]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 223: To ask the Minister for Communications, Energy and Natural Resources if he has made an effort to contact the Energy Regulator or his EU colleagues with a view to bringing fuel oil prices at the commercial outlets here into line with oil prices on world markets; and if he will make a statement on the matter. [10677/09]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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I propose to take Questions Nos. 222 and 223 together.

The Irish oil industry is fully privatised, liberalised and deregulated and there is free entry to the market. There is no price control on petroleum products and it has been the policy of successive Governments to promote the model of free and fair competition with the objective of creating greater price competition and wide consumer choice.

The Tánaiste and Minister for Enterprise, Trade and Employment requested the National Consumer Agency (NCA) to undertake a survey on retail prices of petrol and diesel. The NCA has completed its report, which is available at www.consumerconnect.ie.

The NCA Report confirms that there is little evidence to suggest unwarranted delays in the passing on of wholesale price changes to the consumer at the pump. The report noted in particular, that the prices that 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 prices at the pump reflect global market price, transportation costs, euro/dollar fluctuations and other operating costs. Price differences are an ongoing feature of the market economy and it is a matter for retailers to explain price differences where they occur.

The report also identified the need to improve the manner in which information on petrol and diesel prices in Ireland is collected, analysed and made available. My Department is working with the European Commission and the Irish oil industry to improve the transparency and relevance of price statistics both in Ireland and as published in the EU oil price bulletin.

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