Varadkar raises concerns around supply of diesel but rules out rationing energy

Energy prices could double as a result of spiralling inflation and the Russian attack on Ukraine, Tánaiste warns

Mr Varadkar said forcing energy companies to put customers on the most beneficial tariff as has been suggested by opposition parties is something that is being looked at by the Government. Picture: David Creedon

The Tánaiste has raised concerns around the supply of diesel in the coming months but has ruled out rationing of energy at this point.

Leo Varadkar has warned energy prices could double as a result of spiralling inflation and the Russian attack on Ukraine.

Asked about a possible package of measures to address the cost of living, Mr Varadkar said: "You'll have heard the Taoiseach talk about a few options, you know, for example, extending eligibility for the fuel allowance, you'll have heard Minister Ryan talking about some of the ideas around differential pricing, making it easier for people to avail of discount rates.

"A lot of things are in the mix and a lot of what we can and can't do will be determined by the budgetary position for a start, because we don't want to use borrowed money to do this, and secondly, what we can do under European law and we should be able to come up with something in the next couple of weeks."

He added: "I think people understand the situation, they know that the price of energy has gone up, they're feeling in their pockets, they're having to cut back on all their spending as a result, that's a real problem and that's very real, very severe. 

"But I think people also understand that this is driven by international factors, that when the price of gas on the international markets increased fourfold that obviously is going to have an effect on the price of things here."

He said the Government would do "whatever it can" to soften the financial blow on households, but he added: "We don't want to get in a position whereby we're borrowing money with the people's credit cards only to take it back off them at a later date."

Mr Varadkar said forcing energy companies to put customers on the most beneficial tariff as has been suggested by opposition parties is something that is being looked at by the Government.

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But he added: "You'll often hear the opposition throw out ideas that sound good on the face of it, when you look into them they're either illegal or impossible. So we'll have to make sure whether this one is possible and legal. But we will do that in good faith, where an idea is proposed we have a responsibility to examine it."

On the security of fuel, oil, and gas supplies, Mr Varadkar said: "The global price of gas has increased fourfold and that, of course, has an impact then on the price of electricity. Thankfully, we're not going to see prices increase by fourfold, but they will increase a lot and you know if you take from trough to peak, we may see gas energy prices as much as double and no government unfortunately will fully compensate people in business for that."

Asked if a rationing of energy may be required in the coming months, Mr Varadkar said: "There is concern around supply of diesel potentially over the next couple of months and then gas if the Russians were to cut off gas supplies to Europe. 

"But we're confident that with the contingency measures we put in place we won't be in a position to have to ration any energy. But we will be encouraging conservation and we will make contingency plans in the unlikely event that that were to occur."