Simon Harris has said the current energy crisis is “the worst the world has ever seen” amid soaring fuel prices בעקבות the US-Israeli war on Iran, reports RTE.
Diesel and petrol prices have surged significantly despite recent Government measures such as excise duty cuts, reports RTE.
Prices have now reached around €2.14 per litre for diesel and approximately €1.91 per litre for petrol, with some areas experiencing even higher costs.
Speaking outside the General Post Office following a 1916 Easter Rising commemoration, Mr Harris said a leaders’ meeting will take place on Wednesday to address the issue, reports RTE.
The meeting will involve Micheál Martin and Seán Canney and will focus on energy supply and security.
He said it is essential that the Government continues working intensively with national and international partners to manage the situation, reports RTE.
Mr Harris described the meeting as an important opportunity to assess Ireland’s energy position.
“really important opportunity for us to be briefed and take stock on where we are at from an energy supply, energy security point-of-view”, reports RTE.
When asked about the possibility of fuel rationing, he said current advice does not indicate a major concern regarding supply.
“However, we have got to context that by saying that the situation is obviously fast-evolving. We are continuing to see this war evolve. We are continuing to see damage to energy infrastructure,”, reports RTE.
He added that households and businesses should be advised on conserving energy.
“It is a very different crisis in the summer months than it can be in the winter months.
“So, obviously, we hope to see this war end. It is true to say there is an economic challenge no matter what happens.
“The economic challenge is easier to manage if the war comes to an end,”, reports RTE.
Mr Harris acknowledged that no government can fully absorb the economic impact of the crisis.
“But the Irish Government is well placed to assist our citizens,
“We stand ready to consider further measures in the time ahead.
“But I have got to be honest with people, we have to prepare, not just for the days ahead, but for the months ahead, for the year ahead,”, reports RTE.
Sinn Féin said households and businesses are under severe pressure and reiterated its call for the Dáil to be recalled.
Louise O’Reilly said people are “really hurting” due to rising costs, reports RTE.
“This is incredibly serious,” she said.
“I was out this weekend talking to families in my own constituency, and they are really, really feeling the pinch, not alone in households, but also in businesses, in key sectors of our economy and right across the state, workers and families are under incredible pressure,”, reports RTE.
She criticised the Government for not recalling the Dáil during the Easter recess.
“20 days is the length of the (Easter) recess in the midst of an unprecedented crisis, people are looking to the Dáil, they’re looking to the government, they’re looking for leadership. What they get is silence,”, reports RTE.
“It’s not for Simon Harris to decide when people are having a crisis,” Ms O’Reilly added, “families, workers and key sectors of our economy are in crisis at the moment”, reports RTE.
Meanwhile, Arnold Dillon warned that retailers are concerned about the impact of rising costs.
He said further Government intervention may be required if the crisis continues in the coming weeks and months, reports RTE.
“It’s probably too early to say exactly what the implications will be for prices into the future, but clearly any of these concerns will have an upward potential price pressure,” reports RTE.
He also warned of potential impacts on consumer confidence and economic performance.
“I think, unfortunately, that may no longer be the case,” reports RTE.
Economic and Social Research Institute behavioural scientist Pete Lunn said it may be difficult for people to change habits to conserve fuel.
He said this is particularly true where there are limited alternatives to driving, reports RTE.
“If you are using vehicles for work or are in a situation where you have no alternative but to drive, it is very difficult to change your behaviour or respond,” reports RTE.
He suggested combining journeys could help reduce fuel usage.
“Driving is a buy now, pay later decision,” reports RTE.
Institute of International and European Affairs chief economist Dan O’Brien said the crisis would need to worsen significantly before a recession becomes likely.
He said fears of inflation are influenced by recent experiences such as the pandemic and previous energy shocks, reports RTE.
“A lot of it is to do with what they call a recency bias. The last time there was a major war and energy prices went up, it also coincided with a big rise in inflation. It was mostly to do with the pandemic, the war in Ukraine made it worse … there is a fear that is happening again,” reports RTE.
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