Taoiseach warns of ‘price gouging’ as home heating oil surges after Iran strikes

Government orders energy market review as heating oil prices spike sharply following US-Israeli strikes on Iran

The Taoiseach was asked about reported increases in petrol and home heating oil costs.

Taoiseach Micheál Martin has said there is a “degree” of price gouging by fuel companies after home heating oil prices soared following US-Israeli strikes on Iran.

Mr Martin said both the Commission for Regulation of Utilities (CRU) and the Competition and Consumer Protection Commission (CCPC) should carefully monitor developments.

Oil price comparison website oilprices.ie shows the average price of 500 litres of home heating oil has jumped significantly since the US and Israel began strikes on Iran on 28 February.

On Tuesday, the average cost for 500 litres of oil stood at €619, up from €495 on 27 February.

Mr Martin said Ireland imports home heating oil through Norway and Britain and argued there is no necessity to increase prices because of the war.

The Taoiseach urged consumers to complain to both the CCPC and CRU.

He made the comments in response to Social Democrats leader Holly Cairns, who said energy companies have already “cynically capitalised on this crisis by blatant price gouging”.

Meanwhile, Enterprise Minister Peter Burke has instructed the Competition and Consumer Protection Commission (CCPC) to review Ireland’s retail energy market amid concerns about fuel hikes due to the war in Iran.

On Tuesday, opposition TDs raised concerns about fuel price increases linked to instability in the Middle East, with a key oil and gas shipping route – the Strait of Hormuz – closed.

TDs highlighted recent price hikes in home heating oil.

A Government source said the crisis in Iran and the wider Middle East may lead to “upward pressures on energy prices”, but warned this must not result in disproportionate increases for consumers.

“The Minister's concerns are further informed by the work of the Cost of Business Advisory Forum which he convened last year, where concerns about a perceived lack of competition and transparency in the energy market have been highlighted,” the source said.

 “Concerns were also raised as a meeting of the Cabinet Subcommittee on the Economy, Trade and Competitiveness which met on 2 March last.” 

Mr Burke said Ireland already experiences high energy prices, citing recent Eurostat data showing it has the fifth highest in the EU.

“It’s imperative that we ensure the market is competitive and fair for consumers, so that’s why I am asking to CCPC to carry out this review to ensure we are using all the levers at our disposal,” Mr Burke said.

Meanwhile, a spokesperson for Tánaiste Simon Harris said there were no plans to examine a cut to excise duty on fuel.

However, the spokesperson said the Government will continue to support vulnerable people with their energy costs.