Government must cap oil prices now
Government must cap oil prices now - The Labour Party
- No supply shortage, no excuse
- Government has legal power to act
Labour Enterprise spokesperson George Lawlor TD has called on the Government to immediately introduce a maximum price order on home heating oil following sharp price hikes by suppliers in the wake of events in the Middle East. As households face yet another cost of living blow, Deputy Lawlor said there is no supply shortage to justify the increases and urged Ministers to use existing powers under the Consumer Protection Act 2007 to cap prices at last Friday’s level.
Deputy Lawlor said:
“What we are witnessing is pure price gouging. Home heating oil companies have hiked their prices overnight, blaming events in the Middle East, yet the oil currently being delivered to Irish homes has been in the country for weeks if not months. There has been no sudden disruption to supply. There is no shortage. There is no justification for hammering families in this way.
“There is a long history of maximum price orders in Ireland. Under the Consumer Protection Act 2007, if the Government believes abnormal circumstances exist in the supply of a product, it can declare a state of emergency affecting that product. That order can last for six months and can be extended twice. When it is in force, Government can fix maximum prices. This law exists for moments like this, to stop profiteering after a shock to normal supply.
“Ministers can set a maximum price on home heating oil today. That price should be what it was last Friday before these opportunistic increases. The companies involved already know how much kerosene will be required over the coming months. Much of that stock is already on hand. Ireland also maintains a strategic reserve of oil and petroleum products through the National Oil Reserves Agency, designed to last for at least 90 days in the event of a disruption. As part of that reserve, there are 69 days of jet fuel and kerosene. We are not running out of oil.
“The Taoiseach himself has said there is no excuse for these increases and that we do not want anyone taking unfair advantage. He has acknowledged there is currently no supply issue and that much of our oil comes from the North Sea. If that is the case, then words are not enough. The Government must act.
“We have seen how conflicts can drag on far longer than predicted. Some say this war may last four or five weeks. We have heard that before in other conflicts. Families cannot live with rolling price hikes every time there is a headline from abroad. They need certainty and protection now, not platitudes.
“Heating oil is not a luxury. It keeps homes warm. It keeps older people safe. It allows parents to heat their homes for their children. Hard pressed homeowners cannot absorb sudden and unjustified increases because companies see an opportunity to boost margins. The law provides the Government with the tools to intervene. It must use them.
“I am calling on the Minister to introduce a maximum price order without delay, cap home heating oil prices at last Friday’s rate and send a clear message that profiteering during international instability will not be tolerated. Government must act – now.”