LAST UPDATE | 9 Mar

A PROTEST PLANNED for tomorrow by the Irish Road Haulage Association has been called off after the association’s president Ger Hyland spoke to Transport Minister Darragh O’Brien this evening.

The protest had been planned to call for action to be taken on the escalating fuel prices in response to the conflict in the Middle East.

Hyland said he received a call from O’Brien this evening, who is in Brazil on a ministerial trip, and set up a meeting to take place upon his return to Ireland.  

Hyland said the association is willing to hear Government out and “meet without pre-conditions with a view to resolving what is fast becoming one of the biggest crises to face the haulage industry in 20 years”.

He added that hauliers would “not be deterred” from protest action in the short term by “empty promises” and said the talks should lead to “lasting solutions”.

The association earlier warned that the surge in fuel prices could trigger protests by transport operators, who say the industry is already under pressure from rising costs.

The group called for measures including a temporary suspension of carbon tax and relief on toll charges, warning that higher transport costs will push up prices across the wider economy.

The rising global price of oil is already feeding through to higher fuel costs in Ireland, with petrol and diesel exceeding €2 per litre in many forecourts.

Government discussions 

Government is “continuing to monitor” the situation in relation to fuel prices amid the escalating conflict in the Middle East. 

Cabinet had what was described by a Government spokesperson as an “informal” discussion today on rising energy costs, but no commitment was made to support consumers who are being worst affected. 

The Government spokesperson said EU-led solutions and government-led solutions are being examined and that the issue is top of the European Council agenda for next week.

Over the past week, Irish consumers have experienced rapid increases in costs for heating oil and petrol prices as a result of the conflict, prompting a number of calls for the government to take action.

Although much of Ireland’s oil comes from the North Sea, prices are tied to global markets and are being driven up by fears over access to the Strait of Hormuz.

Minister of State Thomas Byrne said yesterday that the government “may well” take action if prices continue to rise, but indicated cutting the scheduled carbon tax increase would be “the last thing” he would consider.

“I think the government is open to examine supports that we could give, but there need to be supports that people will directly benefit from,” Byrne said.

Trump and the US 

For the first time in nearly four years, oil prices have surged above $100 a barrel as fears grow that the Middle East conflict could disrupt global supplies.

European gas prices also soared as much as 30% this morning – the Dutch TTF natural gas contract, considered the European benchmark, jumped to €69.50, before paring gains slightly.

The spike has been driven by concerns over disruption to shipping through the Strait of Hormuz, a narrow sea passage between the Persian Gulf and the Gulf of Oman through which around 20% of the world’s crude oil passes.

Maritime traffic there has all but halted since the outbreak of the latest fighting.

In the US, Donald Trump dismissed the surge as a temporary consequence of efforts to eliminate Iran’s nuclear threat.

“Short term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, is a very small price to pay for USA, and World, Safety and Peace,” he wrote on social media yesterday evening.

“ONLY FOOLS WOULD THINK DIFFERENTLY!” he argued.

Oil and gas producers around the Gulf have meanwhile begun to decrease output, while Israeli strikes on fuel depots in Tehran have raised fears of retaliatory attacks on neighbouring countries’ infrastructure.

Analysts say the situation could stabilise if shipping resumes normally through the strait, but uncertainty remains while the conflict continues.

Trump’s energy chief Chris Wright argued yesterday that disruptions would be short lived.

“Worst case, that’s a few weeks. That’s not months,” the US energy secretary told CNN.

“They shouldn’t go much higher than they are here because the world is very well supplied with oil,” he added to CBS. “There’s no energy shortage in all of the Western hemisphere.”

Wright said the United States was now talking with shipping companies eager to get their vessels out of the Gulf.

“Early tankers probably will involve some direct protection by the US military” to get through the Strait of Hormuz, he said, adding that he thought traffic would return to normal “relatively soon.”

Additional reporting from Andrew Walsh, Emma Hickey, and AFP

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