Richard Bruton (Dublin North Central, Fine Gael)
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The Irish oil industry is fully privatised, liberalised and deregulated and there is no price control on liquid fuel products in Ireland. The price of fuel is dictated by global factors and reflects global market price (traded in dollars), Euro/Dollar fluctuations, refining costs, transportation costs, other operating costs, prevailing Excise Duty and VAT. The National Consumer Agency, now part of the Competition and Consumer Protection Commission, carried out a survey in 2008 in relation to the underlying reasons why pump prices for petrol and diesel were appearing not to fall in line with the drop in the wholesale price of oil. The related Report’s overall finding was that, at national level, price changes for refined petroleum products are being passed on to Irish consumers in a relatively timely fashion. 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 former Agency’s report also found that, in the main, as well as price changes for refined petroleum products being passed on to consumers in a relatively timely fashion, that profits of oil companies involved in the downstream supply of refined oil product supplies in Ireland were relatively modest and that many fuel retailers were becoming more and more dependent on non-fuel retail offerings to sustain revenue and margin opportunities. The Agency's report did highlight the importance of the availability of price information in terms of empowering consumers to achieve the best value for money when purchasing liquid fuel products.

Many international studies have identified that petrol and diesel prices tend to rise faster than they decline, and that this is likely due to a time lag between when the retailers learn that wholesale prices will be changing and when consumers learn this and begin to more actively shop around.

The Retail Price (Diesel and Petrol) Display Order 1997 (S.I. No 178 of 1997) requires all persons selling certain fuel products to specify by way of a public notice on their premises the price per litre being charged to the consumer for these commodities. Accordingly, I would strongly encourage consumers to inform themselves of the different price offerings in their localities so as to enable them to proactively seek out the best value when purchasing fuel products.

The Competition and Consumer Protection Commission is the independent statutory body responsible for enforcing competition law in the State and has a statutory role in monitoring compliance with this law and ensuring that petrol and diesel prices are accurately and accessibly displayed. As the Competition and Consumer Protection Commission can investigate anti-competitive practices on its own initiative or on foot of complaints received, any evidence (past or present) of anticompetitive arrangements in the wholesale and retail market for petrol, diesel and home heating oil should be brought to the attention of the Competition and Consumer Protection Commission .