One of the largest waste management companies in the State is to impose a fuel surcharge on all its domestic customers in response to the spike in the price of oil on global markets as a result of the conflict in the Middle East.
Panda Waste, which has more than 350,000 customers around the country, has said from this month it will attach a surcharge of 97 cent plus VAT to monthly bills.
This is despite the fact that the company is also set to benefit from measures rolled out by the Government to help companies manage the current energy crisis.
While the charge is small and will add just €12 to the annual cost of refuse collections, the company is one of the first in Ireland to impose fuel surcharges in response to the continuing crisis.
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It could be an indication that other companies in the waste management sector will adopt the same approach, and similar charges could be seen across the wider economy.
“Like many businesses Panda has been hit hard by the recent spike in fuel prices in the last month driven by ongoing global instability,” the company said in a letter to customers.
“Until now we have absorbed these rising costs ourselves to protect our customers from changes to their bill,” the note continues. “Unfortunately with prices continuing to climb we are no longer able to do so without affecting this service you rely on.”
Panda said that as of now, invoices will include “an itemised temporary fuel surcharge of €0.97 plus VAT per month".
It said this would amount to as little as 16 cent per collection for a household that had two lifts per month on a three-bin service.
Conor Walsh of the Irish Waste Management Association said he was unable to talk about the pricing at individual companies but said, in general terms, fuel costs had soared for members.
“Fuel and labour are the two biggest costs faced by waste management companies,” he told The Irish Times.
He said that although a lot of focus was put on companies when they increased their prices, costs to consumers over the last decade had climbed by significantly less than the general rate of inflation.
He pointed to an independent assessment of domestic waste prices the IWMA had carried out earlier this year by economist Frank Conway.
“We asked him to independently look at prices and the price changes over the period from 2020 to 2026,” Walsh said.
“That report suggested an average price increase of 16 per cent compared with inflation of over 24 per cent,” he said.
Last month the Government agreed over €500 million in measures to support those struggling with rising energy costs.
The supports included direct payments to hauliers, bus operators, farmers, and agricultural contractors.
A spokesman for Panda said that “due to the significant recent increases in the cost of fuel, Panda has been forced to apply a temporary fuel surcharge. Unfortunately, we can no longer continue to absorb this major increase in the cost of operating. This surcharge will be kept under review and will be discontinued as soon as fuel prices ease.”
He confirmed the company would be accessing the Government supports.
“Panda is availing of the new Government fuel measures; however, its fuel costs are still significantly higher than was previously the case,“ he said.
