Immediate increases in oil and fuel prices underline the need to give the Competition and Consumer Protection Commission (CCPC) stronger and faster enforcement powers, a Fine Gael TD has said.
Fine Gael TD for Offaly, John Clendennen, made his submission on the public consultation on enhancing the CCPC last week, before war broke out in the Middle East and fuel prices escalated.
It comes as leading economist, Charlie Weston, warned that the cost of diesel and petrol could climb by 70 cent extra per litre, due to the ongoing violence in Iran.
The Government has also warned that the development could cause a shock to supply lines with the potential increases.
Clendennen said that, while international tensions can impact global oil markets, consumers are entitled to clarity and fairness when price increases are introduced with almost immediate effect.
“Fuel suppliers typically operate hedging strategies designed to smooth out short-term volatility in wholesale markets,” he said.
“In many cases, fuel being sold at forecourts was purchased weeks in advance at previously agreed prices. When price increases are introduced immediately following international events, it is reasonable for consumers to ask questions.”
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The Fine Gael TD said he has constituents contacting his office this week, who are reporting large increases in their home heating oil costs. One person said the cost increased 52 per cent for 500 litres from €475 in December, to €725 this week.
“This is not in pace with Brent crude oil increases which have risen by an estimated 26% over the last three months.”
He said this is completely unfair and is precisely why the CCPC must have modern, effective tools to monitor markets and act quickly where necessary.
“At present, the CCPC is often reliant on lengthy court processes to impose significant sanctions. That can take years. If we want public confidence in pricing transparency and market fairness, enforcement must be timely and credible.”