OIL PRICES HAVE hit a three-month low, but Fuels for Ireland has said the government “cannot pretend Ireland’s fuel affordability problem has gone away”.

Oil prices dropped below $80 (€69) a barrel today based on optimism over the promised reopening of the Strait of Hormuz.

US President Donald Trump said the Strait of Hormuz would “completely open” once Washington and Iran sign their peace agreement on Friday in Switzerland.

Iranian media reported that three oil tankers and two cargo ships had already passed through.

Tehran blockaded the strait after the US and Israel launched their war against Iran on 28 February, prompting Washington to later halt shipping to and from Iranian ports.

Kevin McPartlan, CEO of Fuels for Ireland, welcomed easing oil prices but added that when government excise cuts end next month, “prices will rise again unless there is a plan in place”.

Tánaiste Simon Harris said on Monday that the government will consider extending fuel excise cuts on petrol and diesel over the coming two weeks.

The emergency measures, introduced in March at the outset of the conflict in the Middle East, are due to expire at the end of July.

Excise on petrol was reduced by 10 cent, bringing the total reduction on petrol to 27 cent (VAT inclusive), while excise on diesel was also reduced by 10 cent bringing the total reduction on diesel to 32 cent.

Harris remarked that “we’ve seen time and time again how volatile the oil markets can be when an announcement is made” and that “government is keeping a very close eye on all of this”.

Harris said the issue will be considered in a “couple of weeks’ time” because there is still time to consider what the most appropriate thing to do is.

McPartlan today remarked: “This period of relative stability provides an opportunity to address a much bigger issue: how fuel is taxed in Ireland and how Government can create a fair, sustainable framework that protects consumers while supporting the transition to a lower-carbon future.”

He said there is a “closing window to establish an independent expert group to examine fuel taxation and the cumulative impact of Government policies and obligations on the final price paid by consumers and businesses”.

He called for a “long-term strategy that balances affordability, energy security and climate ambition” as opposed to “another short-term intervention when the next crisis occurs”.

McPartlan added that “allowing temporary supports to fall away without addressing the underlying issues risks repeating the mistakes of the past”. 

“Ireland cannot continue to move from one energy crisis to the next without a coherent plan,” said McPartlan.

He said that the “recent crisis has shown that energy security, affordability and decarbonisation are not competing priorities, they must be addressed together”.

McPartlan added this period provides an “opportunity to develop a lasting solution before the next global disruption arrives”.