AN EXCISE DUTY cut on petrol and diesel which came into effect at midnight will reduce the price of diesel by 20 cent and the price of petrol by 15 cent until the end of May – but there have been contrasting reports today on whether the price drops have been reflected at the pumps.

This has led to criticism that fuel prices increased quickly after conflict in the Middle East began, but don’t seem to be dropping as quickly since the excise duty cuts came into effect.

“Up like a rocket, down like a feather,” one Reddit user said today, while another said the lag in price decreases “should be used as evidence of price gouging”.

Vincent Jennings, CEO of the Convenience Stores and Newsagents Association and former forecourt owner, denied that filling stations are attempting to “screw customers”.

Speaking to The Journal, he said that anybody making comments alleging filling station owners are decreasing prices too slowly are “in absolute ignorance of the facts”.

He said prices increased quickly after the outbreak of the war due to wholesalers raising them, which Irish filling stations then corresponded with. But, he said the delay in prices coming down after excise duty cuts is different.

The price of fuel in Applegreen, Ballincollig, Co Cork, today. The Journal The Journal

Despite the excise duty cuts, Jenning said filling station owners won’t be able to reduce their prices until they have sold all the fuel they bought at the previously higher prices – which he estimates could take between two and ten days from last night.

Jennings said the time lag has nothing to do with ‘gouging or profiteering’. “Nobody can either sell, or be expected to sell at a price that’s lower than they bought it for,” he said.

He said filling stations owned directly by fuel wholesalers aren’t as reliant on prices set by wholesalers and may be able to sell fuel more cheaply, but private operators “have to ensure they stay in business”.

Earlier this month, Jennings was fiercely critical of the government after members accused filling station owners of price gouging for raising fuel prices so soon after the Strait of Hormuz first closed, despite the fact Ireland gets its fuel from the North Sea.

“That man never worked behind a shop counter in his life. He hasn’t a clue what he’s talking about,” he said after the Taoiseach said there was “no excuse” for prices going up at the pumps. 

At the time, Jennings told The Journal that although Ireland sources oil from the North Sea, the war impacts the international oil price, called the Platts index, on a daily basis. 

He said forecourt owners order fuel in bulk amounts from wholesalers who set the price, and usually only have three days before they have to pay for the fuel, which is unlikely to be enough time to sell it all.

This means owners are faced with bills for a product before they have sold it, which can impact the price they have to charge for it.

“I understand it might seem hasty but only they know what’s in their bank balance,” he said.

Today, Jennings again defended staff and owners of filling stations amid the fuel cost crisis.

“Business people are not out to screw our customers. It would be a very short term thing to do,” he said.

Discussing the price of fuel, he said “the sooner it comes down the better for everybody”.

“The most important thing is for people to be nice and not abuse filling station workers,” he added.