Written answers

Thursday, 12 March 2015

Department of Communications, Energy and Natural Resources

Energy Prices

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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289. To ask the Minister for Communications, Energy and Natural Resources the extent to which he and his European Union colleagues have discussed the issue of energy costs here and throughout the European Union, with particular reference to the need for oil companies to pass on oil price reductions to the consumer, including the motorist, domestic households and commercial users; the extent to which the economic benefit continues to be assessed in this regard; and if he will make a statement on the matter. [11050/15]

Photo of Alex WhiteAlex White (Dublin South, Labour)
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The fall in oil and gas prices on international markets, although referenced at recent meetings between energy ministers, has not been a specific topic of discussion. One of the main ways that competitiveness is addressed at a European level is through ensuring that the EU has well-functioning, liberalised energy markets. This is seen as the most effective means to deliver energy to consumers at lowest cost. This was emphasised at last week's Council of Energy Ministers at which the Energy Union Package was discussed in detail.The Irish oil sector is completely privatised, liberalised and deregulated and there is free entry to the market. It is government policy to promote competition and consumer choice.

Oil is primarily consumed in two sectors of the economy - in transport and heating. The amount of oil used in the electricity sector is negligible at less than 1%. In terms of gasoline and diesel prices at the pump and home heating prices, the Competition and Consumer Protection Commission (under the aegis of the Minister for Jobs, Enterprise and Innovation) has a role in ensuring that the market is functioning correctly and that consumers are not being disadvantaged. Previous investigations and surveys, available at , into oil prices, including home heating oil, indicates that the price paid by consumers is largely determined by taxation levels, the internationally traded price of crude oil and the consequent price at which refined product is traded in Europe, along with the level of competition in the retail market.

The European Commission maintains a Statistics and Market Observatory, which presents consumer prices and net prices of petroleum products in EU Member States (known as the Oil Bulletin) on a weekly basis. The Oil Bulletin is designed to improve the transparency of oil prices and to strengthen the internal market. The relevant link is:

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