There has been an “avalanche” of “outrageous” increases in fuel prices across Ireland amid the Middle East conflict, the Dáil has been told.
Social Democrats TD Cian O’Callaghan said the public, already struggling with energy bills, are facing an “avalanche” of price hikes, reports RTE.
Tánaiste Simon Harris urged people to send any examples of alleged “price gouging” to the state competition watchdog.
Reports of steep rises in fuel costs, including home heating oil and motor fuel, have been submitted to TDs who have expressed concern about the increases, reports RTE.
The Government has stated that there should be no immediate rise at the forecourts due to the Middle East conflict, as any impact would take weeks to appear.
Earlier this week, Minister for Public Expenditure Jack Chambers said intervention on energy prices was “highly unlikely,” but that “pure opportunism” on fuel prices must be addressed by the Competition and Consumer Protection Commission (CCPC), reports RTE.
In the Dáil today, opposition politicians used their Leaders’ Questions slot to voice worries about price hikes.
Social Democrats deputy leader Cian O’Callaghan accused the Government of “empty words, meaningless rhetoric, but no action, no meaningful support,” and described the CCPC as “toothless,” reports RTE.
He said: “People are now being charged absolutely extortionate prices for home heating oil, and you’re saying that you’re going to monitor the situation, keep it under review, is of absolutely no use to people who are facing big bills right now,” reports RTE.
“The increases are absolutely outrageous,” he said, reports RTE.
Sinn Féin TD David Cullinane said since the US and Israel began bombing Iran and the conflict spread across the Middle East, home heating oil prices had “skyrocketed,” reports RTE.
“We are hearing from people right across the country, and in most cases, the price of a delivery has effectively doubled,” he said, reports RTE.
“The average price for 500 litres is now just under €800,” reports RTE.
He said a household told him they were quoted €525 for heating oil on Saturday, and “days later” the same supplier charged €859, reports RTE.
He said a worker ordered €498 worth of oil at the weekend, and “within days” the same supplier was charging €700, reports RTE.
Another worker reported paying €447 for 500 litres last month, with the price rising to €800 this week, reports RTE.
He said: “When prices jump like that in a matter of days, people draw a very obvious conclusion: somebody is cashing in on a crisis,” reports RTE.
Mr Harris said the Government had been working “around the clock” on the Iran issue, including on “economic aspects,” but first welcomed the hundreds of Irish citizens who had returned to Dublin, reports RTE.
He noted that the conflict in the Middle East could have a “potential inflationary impact,” though the scale depends on the length and intensity of the crisis, reports RTE.
Government figures have also received “many reports from across the country of what many people are referring to as ‘price gouging’,” reports RTE.
Meanwhile, coach operators in Ireland fear fuel could reach €2 per litre amid the surge since the start of the war in Iran, reports RTE.
The cost of motor fuel and home heating oil has climbed rapidly since the weekend following the spike in global oil prices, reports RTE.
The Coach Tourism and Transport Council of Ireland, representing bus and coach operators nationwide, said fuel costs for operators have risen 18% in recent days, reports RTE.
Managing Director of Wexford Bus and Vice Chair of the Council Brendan Crowley said every day orders are placed for fuel, “we’ve seen an increase of maybe six or seven cent,” reports RTE.
Speaking on RTÉ’s Morning Ireland, he said the price increased from €1.64 per litre on Monday to €1.88 today, reports RTE.
“So at the rate we’re going, €2 per litre is not terribly far away,” Mr Crowley said, reports RTE.
He added the industry has faced other costs in recent years, including the pension levy and auto-enrolment, which have “literally driven inflation in the industry anyway,” reports RTE.
Mr Crowley said government intervention is needed “in terms of a fuel variation on contracts like schools and local links and all of those types of services,” similar to what occurred at the start of the Russian invasion of Ukraine in 2022, reports RTE.
“There’s a huge amount of tax being taken on fuel. Even those increases…in per litre this week, it’s an extra 5.5 cents in VAT to the Government, as in increased tax take for the Government,” he said, reports RTE.
“So we need to look at rebates, we need to look at the excise duties. There’s a lot of charges in there that people aren’t aware of,” he added, reports RTE.
Mr Crowley warned many businesses “are just on the edge…and I think this is just going to push them over the edge,” reports RTE.
“Our fuel prices have gone up 20%. I think unless there’s some change in Government attitude towards it, it means that people will have to consider putting fuel surcharges on,” he said, reports RTE.
“That’s not really going to be great for trying to encourage people to park their car and use public transport,” he said, reports RTE.
Speaking on the same programme, Minister for Enterprise Peter Burke said he will meet fuel industry representatives next week to examine the rationale for price increases, reports RTE.
He wants a “short” investigation by the Competition and Consumer Protection Commission to review “very clear examples in relation to where prices have gone up very significantly,” reports RTE.
The minister said Ireland has strong competition laws, “stating very clearly that if there is collusion, if there’s unfair practices, if competition law has been breached…that we will take action through the courts, and there’s administrative fines which are very significant for those companies,” reports RTE.
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