Spiralling cost of diesel prompts calls for probe

THE Competition Authority was called on to carry out an urgent investigation into the spiralling cost of diesel yesterday.

Chairman of the Public Accounts Committee, Michael Noonan, said he wants to know why diesel is now dearer than petrol at the pumps.

Mr Noonan said the rise in the cost of diesel is having huge cost implications for hauliers based in the regions.

He said: “Traditionally diesel has been between 10 cents and 20 cents cheaper than petrol and this together with better mileage to the litre has encouraged the haulage industry to rely on diesel.

“But this economic advantage is now quickly disappearing.”

He said he wants an immediate investigation to find out if oil companies are involved in non-competitive practice.

Mr Noonan said: “It may be just a market trend and connected to the cost of different types of crude oil. But it could also be oil companies deciding to make extra profit from diesel, knowing they have a huge captive market dependent on this fuel, particularly in the haulage industry.”

Higher diesel costs add significantly to the cost of transport for haulage companies in the regions.

He said: “Limerick’s location as the capital of the mid-west region with long journeys to both the UK and continental ferries leaves us with a competitive disadvantage in transport costs.”

If tolls on the proposed new Limerick Tunnel and the dual carriageway from Limerick to Portlaoise become a reality, he said this disadvantage will be magnified.

Mr Noonan said: “I am requesting the director of the Competition Authority to examine why diesel costs are now exceeding petrol costs at most locations. Diesel is the lifeblood of the transport industry. The lower comparative price of diesel must be restored.”

Hauliers from the mid-west have warned that proposed tolls at the new tunnel to be built under the Shannon will force many out of business.

The voiced their concerns at a public oral hearing by An Bord Pleanala.