Simon Harris vows to keep fuel and oil prices under review
Tánaiste Simon Harris said that despite the prices falling, the European Central Bank and the European Commission must provide member states with ongoing 'macroeconomic analysis of the situation'.
Tánaiste Simon Harris has vowed that the Government will continue to keep fuel and oil prices under review despite a fall in prices.
Speaking in Brussels at a meeting of EU finance ministers, the Fine Gael leader also stated that if the ongoing war in the Middle East “doesn’t end quickly”, as suggested by US President Donald Trump, “Europe and member states have to be ready to act”.
It comes as a group of environmental NGOs warned that scrapping or suspending carbon tax increases to limit price rises would be a “retrograde” step that would harm homeowners upgrading their homes and damage efforts to reduce emissions.
The Government has repeatedly ruled out suspending the carbon tax increase scheduled for late April.
The price of oil soared to over $100 a barrel on Monday but fell to under $90 on Tuesday afternoon following Mr Trump’s suggestions that the conflict is “pretty much” over.
Mr Harris welcomed the falling prices but said that the Government is keeping everything under review.
“In many ways, that's a stark reminder of the volatility of the situation,” he said.
"As we've consistently said in Ireland, as we say in Europe as well, the length and the depth of this crisis will have a very material impact on the economic effect of the crisis as well.
Mr Harris said that despite the prices falling, the European Central Bank and the European Commission must provide member states with ongoing “macroeconomic analysis of the situation”.
He continued: “I know president Trump's comments [on Monday] suggested that their objectives are nearly complete. We didn't get much more detail around that.
“But this is a very different economic situation, in the words of the Commission, it becomes more benign if it ends quickly.
“But if it doesn't end quickly, Europe and member states have to be ready to act. Certainly in Ireland, we keep everything under review.”
Mr Harris also warned that the price increases should serve as a “sharp reminder and wake-up call” about European energy independence.
Meanwhile, Environmental Pillar has warned against postponing carbon tax increases, arguing it would make “much more sense” to temporarily cut excise duty on fuel.
“Clearly those advocating for this haven’t considered the impacts it will have on communities and households across the country who are accessing funding to upgrade their homes to make them warmer and more fuel and energy efficient,” Environmental Pillar policy advisor Oisin Coghlan said.
“[This is] as well as farmers who rely on it for the actions they have taken to make their farms more environmentally friendly and sustainable.”
The Irish Farming Association last week called for an immediate suspension of the carbon tax increase planned for late April.
Its president, Francie Gorman, said the Government can “significantly help stabilise energy prices here by removing the additional cost of carbon tax”.
Road hauliers have warned their industry faces collapse because of escalating fuel prices and other costs, while the Seafood Ireland Alliance has also called for action.
Separately, the Irish Petrol Retailers Association (IPRA) again defended its position amid rising costs at the fuel pumps that have seen petrol and diesel nearing or surpassing the €2 mark.
It said that Government collects 65% of the price of petrol and 60% of diesel from excise duties, carbon tax, and VAT, while the retailer only collects up to 4%.
“The idea that small local retailers are profiteering from rising prices is false,” the IPRA’s David Blevings said.
It added that the Government should “stop blaming the retailers and reduce fuel taxation”.
Elsewhere, Sinn Féin announced it will introduce emergency legislation in the Dáil to cut the cost of petrol, diesel, and home heating oil.
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