Bernard Durkan (Kildare North, Fine Gael)
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Question 336: To ask the Minister for Communications, Energy and Natural Resources the degree to which, directly and in conjunction with his EU colleagues, he has monitored the growing costs of energy, which are deemed to originate in shortages and growing industrial development but much more likely to be driven by speculators in fuel markets; if any explanation has been given as to the reason that road diesel has become more expensive than petrol in some jurisdictions throughout the EU; if any steps can be taken to address such matters in view of their importance in the current economic situation; and if he will make a statement on the matter. [37653/11]

Pat Rabbitte (Dublin South West, Labour)
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Energy policy objectives for Ireland and the European Union are delivering security of supply and reducing the impact of competitive energy costs for consumers and business, through the development of renewable energy resources, enhanced energy efficiency and greater competition. National and EU energy policy objectives are also informed by the critical work of the International Energy Agency (IEA) on all aspects of energy supply.

The Government's energy efficiency and renewable energy programmes including the Biofuels Obligation are aimed at moving Ireland's economy away from reliance on imported, carbon intensive fossil fuels, which are subject to price volatility.

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 objective of successive Governments to promote price competition and consumer choice.

Previous surveys have shown that prices which 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. Prices at the pump reflect global market price, which is fluctuating, transportation costs, euro/dollar fluctuations and other operating costs as well as the impact of taxes on oil products. The differentials, up or down, between the price of diesel and petrol is a function of supply and demand at various times in the market. The extent to which speculation in the global oil markets has played a part in driving up the cost of oil, is difficult to quantify but a number of informed analysts point to it being a factor.