Watchdog ‘powerless’ to tackle costs as prices rise daily in some garages

Even before the war in Ukraine broke out, new figures show that consumer prices surged by 5.6% over the past year, the largest annual increase in almost 21 years. Picture: Larry Cummins

The State's consumer watchdog has admitted it is powerless to clamp down on price gouging by petrol and diesel retailers even as inflation hits a 21-year high.

Politicians across both Government and opposition parties have demanded the Competition and Consumer Protection Commission (CCPC) carry out a full investigation as motorists report massive increases at the pumps.

Despite a Government intervention to reduce excise on petrol by 20c and diesel by 15c per litre, prices are reportedly being hiked multiple times in the same day at some forecourts.

However, the CCPC has said it has no authority to stop fuel retailers from dramatically increasing costs as it "does not have a role in monitoring price levels across the economy".

"As businesses in Ireland have the power to decide how much they will charge consumers for products, this means that the CCPC does not have a role in reviewing or approving price increases. In very specific circumstances, where businesses form a cartel and collude to fix prices, the CCPC can investigate and refer a case to the DPP for criminal prosecution," the watchdog said.

Even before the war in Ukraine broke out, new figures show  consumer prices surged by 5.6% over the past year, the largest annual increase in almost 21 years.

According to the latest CSO figures, the transport sector saw the largest increase. with prices rising 15.4% while there was a 12.7% hike for housing, water, electricity, gas and other fuels.

The price of diesel rose 32.5%, petrol was up 30.3% and airfares 42.3%. The figures are to the end of February and do not include the surge in fuel costs caused by Russia's invasion of Ukraine, which has forced the Government to cut excise to provide relief for motorists and businesses.

Despite a Government intervention to reduce excise on petrol by 20c and diesel by 15c per litre, prices are reportedly being hiked multiple times in the same day at some forecourts. Picture: Larry Cummins

Along with fuel prices, the cost of staple food items like a sliced pan of bread jumped 12.1c over the past year and bananas increased by 10.2c per kg.

Fianna Fáil TD Barry Cowen has written to  the CCPC, urging it to investigate the "unjustified profiteering" by some retailers, especially in the wake of the war in Ukraine.

Mr Cowen said he had previously called for the State’s watchdog to be turned into "guard dogs on inflation".

"As fuel price increases are showing, the powers of our watchdogs are not effective for gouging during a war. Even though this has been looming on energy prices, nothing has been done to beef up the consumer laws. That needs to happen now as a matter of urgency.

Social partnership also needs to be re-activated now too. The next challenge for the economy will be to tackle the inevitable rising wage demands from this opportunistic price gouging on a helpless public."

Social Democrat co-leader Catherine Murphy also wrote to the CCPC to say she has “received dozens of emails from persons nationally stating that in their respective localities, forecourt garages are increasing their fuel prices a number of times throughout the day in unison".

Wicklow TD Jennifer Whitmore said given that the Government's intervention was meant to ease the pressure on families and businesses "there has to be a robust system, whereby the Government can be sure that that cut is being passed on".

Speaking as he attended a meeting of leaders in Versailles, Taoiseach Micheál Martin said any price gouging on fuel during the ongoing war was "exploiting the situation in a morally unacceptable way and that should cease".