Minister for Public Expenditure Jack Chambers has indicated that any form of Government intervention on soaring energy prices is currently “highly unlikely”, reports Breaking News.
Households and drivers are experiencing substantial rises in home heating oil and motor fuel costs amid the worsening conflict in the Middle East.
Chambers characterised the energy market situation as “extremely volatile, uncertain and unpredictable” and cautioned that announcing measures so early in the crisis would not be “responsible”, reports Breaking News.
Addressing journalists on Wednesday, he stated: “The current position is that there isn’t any intervention on the table.
“We’ll assess the wider position over the weeks and months ahead to see if there’s any sustained or increasing price dynamic – but we have to be careful about what intervention we make and what impact that has on the wider fiscal position.”
He emphasised that the price increases seen at retail level “has nothing to do” with the geopolitical developments and called on the competition authority to address what he described as “pure opportunism” in fuel pricing, reports Breaking News.
“Government will continue to assess the overall position in the weeks and the months ahead, but we won’t be taking any immediate response because it is uncertain – and we also have a new fiscal framework which we have to adhere to.”
Chambers added: “Clearly, if things escalate to an extraordinary degree, we’ll assess that at a given point in time, but we don’t know what the medium-term position will be on this around the economic consequences, or the inflationary consequences, and how that might impact on our growth trajectory,” reports Breaking News.
He highlighted that any shift in spending policy would involve “trade-offs” in other budgetary areas and warned that short-term supports risk turning permanent while creating unrealistic public expectations.
Energy pricing concerns also took centre stage during Leaders’ Questions in the Dáil chamber.
Taoiseach Micheál Martin, leader of Minister Chambers’ Fianna Fáil party, recognised the prevailing “a lot of uncertainty out there at the moment” and stressed that “no one should take advantage of that” to inflate energy costs, reports Breaking News.
“We’re keeping everything under review in terms of that price situation and impact on households.”
In response to Sinn Féin leader Mary Lou McDonald, who referenced a 94-year-old woman in Wexford whose cost for a half fill of home heating oil surged from €464 to €879 in just one week.
She noted 10c per litre increases at petrol stations and accused firms of “clearly taking advantage of this crisis to squeeze even more profit from their customers”, reports Breaking News.
Addressing the Taoiseach directly, she said: “You need to pick up the phone and tell the top brass in these companies to stop fleecing people.”
Martin replied that pump prices should not yet reflect the Gulf situation and that meaningful impacts would typically emerge over several weeks.
He confirmed that the Commission for the Regulation of Utilities along with the Competition and Consumer Protection Commission have been tasked with investigating the price movements, reports Breaking News.
The Taoiseach recalled that the Government’s latest Budget delivered “very targeted measures”, including adjustments to the fuel allowance scheme.
“One of the more fundamental challenges is the coupling of gas with renewables in terms of the price market and the structure that governs the European energy market.
“And that’s an issue that was put on the agenda two weeks ago, but will have an even sharper focus now in terms of the impact of this crisis on the energy market,” reports Breaking News.
He stressed: “I think it’s important the Government’s focus has been on targeting and using our resources to those most in need and those who need our support.”
Martin noted that proceeds from the carbon tax continue to support initiatives such as home energy retrofitting.
McDonald criticised the approach as proof that the Government is “doing nothing”, describing it as “a real subplot of the entire cost-of-living crisis”, reports Breaking News.
She remarked: “No one expects you to end world war, but Taoiseach, will you act decisively to support people who are up against the wall, and will you intervene to support those who are struggling in the cost-of-living crisis?”
The Taoiseach reaffirmed that the situation would stay under ongoing review while maintaining that broad “price caps generally do not work”, reports Breaking News.
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