Dublin: Leaders in Ireland’s fuel industry have rejected allegations that retailers are exploiting the ongoing war in the Middle East to artificially raise fuel prices. The response came after Enterprise Minister Peter Burke instructed the Competition and Consumer Protection Commission (CCPC) to urgently examine recent price increases.
The minister also convened a review meeting with industry representatives to assess developments in the fuel market and hear concerns from suppliers and retailers.
Global Markets Driving Price Increases
At the meeting, Fuels for Ireland CEO Kevin McPartlan said fuel prices in Ireland are largely determined by international markets and not by domestic retailers.
He explained that global wholesale prices have surged sharply since tensions escalated in the Middle East. According to industry data, the international price of kerosene has risen by about 75% since last Friday, while the increase in Ireland has been around 60%.
Similarly, diesel prices on global markets have risen by approximately 48% and petrol by about 15%, though the increases at Irish pumps have so far been somewhat lower.
McPartlan noted that many consumers mistakenly assume that Brent crude oil prices directly determine pump prices, but retail prices are influenced by a wider range of wholesale fuel markets.
Calls for Government Action
Industry representatives argued that the most effective way to ease pressure on consumers would be through government action on fuel taxes. McPartlan called for a comprehensive review of excise duties and other charges applied to fuel in Ireland.
He also said the sector expects to be cleared by the CCPC investigation, noting that a similar probe conducted during the 2022 Russian invasion of Ukraine found that retail price increases in Ireland were largely driven by higher wholesale costs rather than price manipulation.
Safety Concerns for Workers
McPartlan also raised concerns about harassment and intimidation faced by staff working at fuel forecourts and home heating oil depots amid public frustration over rising prices. Minister Burke said the issue is being addressed and confirmed that the government’s Energy Security Group will continue to engage with the sector.
Prices Approaching €2 Per Litre
During the meeting, the owner of a service station in Kilkenny warned that petrol prices could exceed €2 per litre, potentially reaching about €2.02. Industry representatives argued that the state benefits significantly from rising prices through fuel taxes, which account for roughly 32% of the price of petrol and 27% of diesel.
They also urged the government to consider temporary excise duty reductions similar to those introduced during the Ukraine energy crisis.
Heating Oil Prices Surge
Fuel price increases have also sharply affected home heating oil. The cost of 500 litres of kerosene has jumped from €495.09 last week to €833.56, representing an increase of nearly 68%.
Across the country, average pump prices have also risen steadily. Last month, the national average stood at €1.73 per litre for petrol and €1.72 for diesel. In many locations, petrol now exceeds €1.80 per litre, while diesel prices are approaching €1.90.
The surge in fuel costs is expected to have broader economic consequences. Retailers, including supermarkets, are reportedly preparing to raise prices on various goods due to higher transportation and energy costs.
With global oil markets remaining volatile, analysts warn that fuel prices — and the wider cost of living — could continue to rise in the coming weeks.
Irish Samachar English News
Kindly click to join WhatsApp group chat to get important news and breaking news from Irish Samachar