Ireland faces no immediate disruption to oil supplies despite growing international concern about the impact of war in the Middle East and Gulf region on energy markets, Minister for Energy Darragh O’Brien has said.
A meeting of the Government’s Oil Security of Supply Group took place earlier this week and no immediate concerns regarding the availability of fuel for the Irish market were raised.
The group includes officials from the Department of Energy, the Department of Transport, the National Oil Reserves Agency (Nora) and industry representatives,
The meeting took place as the International Energy Agency announced the release of 400 millions of barrels of oil from strategic reserves held by member countries. The move aimed to stabilise international markets and prevent supply disruptions from escalating.
READ MORE
Ireland will contribute 1.6 million barrels as part of the initiative – about 10 per cent of the State’s strategic oil reserves. Nora maintains oil stocks equivalent to at least 90 days of supply at any one time.
[ Iran escalates attacks as oil shock prompts countries to open strategic reservesOpens in new window ]
O’Brien said the Oil Security of Supply Group group had gathered information from industry sources to assess the situation.
“[It met] to collate information from the oil industry on the supply situation as it pertains to local markets,” he said in a statement.
“They reported no immediate supply concerns. The views of the industry will factor into decisions around this release.”
While oil supplies are said to be stable, fuel prices at petrol stations and for home heating oil deliveries have surged since the US and Israel began a campaign of strikes on Iran less than two weeks ago.
Minister of State Michael Healy-Rae on Thursday raised concerns about the impact of rising fuel prices on households and businesses. He said the Government should examine options to reduce the cost of diesel and other fuels if prices rise further.
He said rural households were particularly exposed to the increases because of limited access to public transport and greater reliance on private vehicles.
“Once the price of diesel goes above €2 per litre the alarm bells go off,” the Kerry TD said.
Healy-Rae said the Government should consider reducing taxes on fuel if prices continue to rise, noting that these account for a significant portion of the cost of petrol and diesel.
“Our job is to serve the people, and people would be best served if the Government could do something to reduce the price at the pumps,” he said.
[ IEA plans historic release of oil reserves amid Iran crisisOpens in new window ]
He argued that the exchequer has benefited from an increased tax and excise revenues due to fuel prices having surged.
“People are getting less value, but the Government is getting more tax,” he said. “That’s why I’m essentially saying we should be able to look at doing something to reduce prices at the pumps for people.”
Government sources said no proposals for intervention are currently under consideration, but it was acknowledged that the situation remains unpredictable and could change depending on developments on international energy markets.
Ireland will continue to monitor global supply pressures in the coming weeks while maintaining its strategic reserves and co-ordinating with international partners, they said.
