The Tánaiste has said there should be “no lag” from energy companies in lowering prices if oil costs stabilise, reports Breaking News.
Simon Harris said he hopes a decision by the International Energy Agency to release oil reserves will help ease prices for consumers and businesses, reports Breaking News.
The 32 member countries of the agency agreed to release 400 million barrels of oil from emergency reserves to the market to address supply disruptions caused by the war in the Middle East.
The Finance Minister said the move “makes sense” as it would boost supply and provide more certainty in the market over the coming weeks, helping to reduce volatility, reports Breaking News.
Earlier this week, EU energy commissioner Dan Jorgensen said it was unacceptable that many Europeans are struggling to pay their energy bills on time and suggested governments should reduce taxes and levies on energy.
Asked whether the Irish Government was reluctant to do so because of the benefit to the Exchequer, Mr Harris said: “No, I think the context of what the energy commissioner was saying was that while there’s things that can be done at a European level, there’s also things that are available in the toolkit of a member state,” reports Breaking News.
Mr Harris said he remained “deeply concerned” that prices at petrol pumps had not fallen in line with lower oil prices.
Speaking to reporters in Paris, he said the Government was not ruling out taking action but stressed that any measures would need to be “appropriate”, reports Breaking News.
He also said that households purchasing home heating oil before the summer months would not be affected by the carbon tax increase scheduled for May 1st.
“We’re genuinely working on this, we’re monitoring this, and we’re working with European colleagues – but the most helpful thing we can do right now is try and ensure positive news around supply,” he said, reports Breaking News.
When asked why home heating oil prices had increased much faster in Ireland than in other European countries, the Tánaiste said the country’s reliance on kerosene played a role in the difference.
However, he said the speed at which companies “hiked up their prices” following the outbreak of war was “instantaneous” and “concerning”, reports Breaking News.
He added that if oil prices stabilise, companies should not delay reducing their prices.
“The speed at which prices rose was a lot quicker than the economic advice available to me suggested it should have.
“And all I’m saying is, if you were able to hike up the prices that quickly, if we get to a situation – it’s a very big if, because there’s huge volatility at the moment – but if we get to a situation where there’s some stabilisation in oil prices, I hope those who hiked things quickly would be as quick to reduce things,” he said, reports Breaking News.
Mr Harris also said he hopes a Competition and Consumer Protection Commission investigation into price increases in home heating oil and fuel will be carried out “urgent and thorough”, adding that he believes it could take only a number of weeks.
He said it “really needs to be scrutinised” why some filling stations recorded large differences in price increases following the outbreak of war, reports Breaking News.
He added that the CCPC has powers to impose fines worth millions of euro and to secure convictions through the courts.
While Mr Harris was in Paris, French President Emmanuel Macron hosted a Nuclear Energy Summit in the city on Tuesday, reports Breaking News.
At the conference, European Commission president Ursula von der Leyen said reducing the share of nuclear energy in the EU’s electricity mix had been a strategic mistake.
Asked for his view on those remarks, Mr Harris said both leaders were right to highlight the importance of energy security, noting that the EU remains “too reliant on fossil fuels” from outside the bloc, reports Breaking News.
However, he said Ireland has no plans to change its current energy policy framework and added that the country should instead focus on expanding renewable energy.
Ireland is currently on course to miss its renewable energy targets up to 2030, which could result in billions of euro in penalties, reports Breaking News.
He said: “From an Irish perspective, we have to be restless now about being able to deliver energy infrastructure in a more speedy manner.”
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