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THE STARK RISE of the cost of home heating oil in Ireland compared to other EU countries in the wake of war in Iran is “concerning” and is being investigated by the Competition and Consumer Protection Commission, Tánaiste Simon Harris said today.
The cost of Irish home heating oil rose at a rate of 27.3% between 23 February and 2 March, according to figures from the European Commission – compared to an average increase of 3.3% across other EU countries.
It rose from 96c a litre to €1.23 a litre in that time.
Consumers across Ireland reported massive hikes in their order of oil. MEP Lynn Boylan said the Irish increase compared to the rest of the EU is “more clear evidence that gouging is happening in the home heating oil market”.
Asked about this increase in Paris today, the Tánaiste said the use of kerosene in Irish home heating oil has a “material impact” on these price increases – but there should be “no lag” in the dropping of prices if oil prices stabilise.
Other EU countries use a cheaper diesel-like product, and the market price of kerosene has risen drastically compared to other fuels, Fuels for Ireland CEO Kevin McPartlan said.
Speaking on RTÉ’s Today with David McCullagh, McPartlan said taxes on kerosene in Ireland are a major factor in the increase.
“No one else in the EU pays carbon tax on home-heating oil,” he said, adding that a larger amount of kerosene used in the EU is transported through the Strait of Hormuz than Irish oil.
Addressing the speed of the increase today, the Tánaiste said, “I am concerned by the fact that a war broke out in Iran, and within hours, people were getting text messages saying, ‘You better fill your home heating oil’ from companies now the price has risen,” he said.
He said despite the geopolitical situation, “the speed at which people hiked up their prices is concerning”.
He noted that the market price of oil has dropped but this has yet to be reflected at the pumps or when ordering home heating oil.
“All I’m saying it, if you [companies] were able to hike up the prices that quickly, if we get to a situation – it’s a very big if because it’s a huge volatility at the moment – where there’s some stabilisation in oil prices, I hope those who hiked things quickly would be as quick to reduce things,” he said.
The Consumer and Competition Protection Commission (CCPC) is investigating potential price gouging over both oil and motor fuel. Harris said its work is independent but if the CCPC find evidence of price gouging, it has powers to fine companies and has secured a number of convictions in the courts in recent years.
“I think they need more powers, and [Enterprise] Minister Peter Burke does too, and he is planning on bringing forward legislation shortly to enhance their powers,” he said.
He welcomed the release of oil reserves by the International Energy Association and said he’s hopeful this will have an impact on prices in Ireland. G7 energy ministers met at IEA headquarters in Paris to look at ways to bring down prices.
The organisation said it will make 400 million barrels of oil available from its members’ emergency reserves.
It’s a larger stock than the 182.7 million barrels that were released in 2022 by the IEA’s 32 member countries in response to Russia’s full-scale invasion of Ukraine.
The Tánaiste is in Paris on the first of his two ministerial trips marking St Patrick’s Day. He is to meet with the French Finance and Energy Minister Roland Lescure shortly.
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