Sparks fly over petrol prices

FIANNA Fáíl transport spokesman and Clare TD Timmy Dooley has called on the Government to cut the amount of tax on petrol and diesel.

He said that action is needed as prices reached record highs.
“Fianna Fáil published a bill to immediately cut the price of petrol and diesel by five cents a litre. The Government refused to even consider the proposals, suggesting that Fianna Fáil was living in ‘economic dreamland’ and the problem would sort itself out. Petrol prices at that time were just below €1.65 a litre.
“While the Government has been sitting on its hands, prices have hurtled towards an all-time high of €1.70. How far do prices have to go before the Government wakes up and takes this seriously?”

However Fine Gael’s Pat Breen rejected his constituency colleague’s criticism.
“I am very much aware of the impact that rising fuel prices is having, not just for the tourism industry, but on the entire economy. It is affecting our businesses, our exporters, the road haulage industry, farmers and ordinary families and people who need their cars to get to work and drive their children to school.
“However the price of fuel is a global problem. Ireland is no cheaper or dearer than many other countries. Across the border, the price of diesel is at least ten cents dearer and while 72% of the retail price of fuel here relates to excise duty, VAT and carbon tax, the tax here is still lower than some other countries in Europe, including the UK where it is closer to 80%.”

He said the Fianna Fáil proposal would cost the exchequer €178 million a year, leading to cuts in other areas, and that Fianna Fáil’s rhetoric was in contrast to its record while in office.
“Fianna Fáil’s sudden concern for the hard pressed motorist is in stark contrast to their record on this issue in government over the past 15 years. I would remind the opposition party that it was Fianna Fáil ministers who subscribed to the ECOFIN protocol in 2005 and 2008, which prevents European countries from intervening to reduce prices for competitive reasons, so even if we wanted to intervene we are prevented from doing so”.

Miriam O’Neill of the AA agreed with Deputy Dooley that fuel prices are hitting new highs. She doesn’t expect any immediate respite.
“At the moment you’ve probably seen that its hit the €1.70 mark for petrol and €1.60 for diesel. Basically we don’t see those prices falling in the next couple of weeks, they might sneak up slightly higher, we’ve seen an upward trend all week. There’s no immediate respite, and this is a record high.”

The increase in fuel prices seen over the last few weeks has been rather dramatic, she added. “The price is up about seven cents on last month, so as increases go, that’s pretty steep. There’s a couple of things behind it, obviously the big one is the price of Brent Crude Oil on world markets. Generally there’s a two to three week window for that to have a knock-on effect at domestic pumps.Other factors are the performance of the euro against the dollar, and tax is a massive factor.”

She said the increased prices are having a major impact on people commuting long distances.
“We’ve heard from all sorts of people on it, particularly those who have a longer commute. We’ve heard of one member who is spending a quarter of their wages on fuel, we’ve heard from people who have had to change jobs because they couldn’t afford their previous commute any more, and one or two people just quit their jobs because they couldn’t afford their commute and they went on the dole. That’s an absolutely dire situation, they quite the jobs and looked for something more local because they couldn’t afford it anymore.”

Eoin Gavin from Bunratty is president of the Irish Road Haulage Association. He said he has been inundated with calls from hauliers about the recent increase in the price of diesel.
“It has gone up by 10 cents since I last spoke to you (in late July), that represents about €150 per week per truck,” he said.
He said that talks held with Government earlier this year were quite productive and that he expects a rebate scheme to be introduced for hauliers in the near future.
“They’ve committed to looking at it seriously in the next few weeks, when the budget will be decided on. We’re hoping that the rebate will go ahead then.”

Mr Gavin said the impact across industry is potentially very serious.
“The country is relying on local haulage companies, there is no national fleet, no train system, so it’s going to a situation where the fleets are unsustainable. With regard to buses, Bord Fáilte did a study last July and all the coach operators were below cost. They’re worried about the season next year, and whether they’ll be around.
“A lot of guys dug into reserves and that’ s been depleted over the last three years because fuel has kept rising. This week is the most we’ve ever paid for fuel and I think it’s heading for the €2 mark.”
He said he expects the price to go significantly higher, as there are usually increases in the last few months of the year, due to seasonal factors.