The price of home heating oil has continued to climb nationwide with the average price for 500 litres put at €761 on Wednesday, an increase of more than 50 per cent in less than a week.
Some companies that were charging about €500 for that volume of fuel as recently as last Friday are seeking more than €800.
The dramatic rise, which has been attributed to unrest in the Middle East following US-Israeli strikes on Iran, has led to accusations of “price gouging” and Government inaction.
Minister for Enterprise Peter Burke has confirmed he has engaged with the Competition and Consumer Protection Commission (CCPC) and asked it to urgently investigate claims around price gouging and illegal practice in terms of home heating oil, petrol and diesel.
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“I am encouraging members of the public to contact the CCPC in relation to recent increases in home heating oil and fuel,” he said, adding he had been “assured by the CCPC that these complaints will be carefully and urgently assessed”.
He said the consumer watchdog could avail of a range of powers to investigate and prosecute where clear breaches of the law were evident, and could impose fines of up €10 million in certain circumstances of breaches, or 10 per cent of a company’s turnover.
Burke said he was also meeting industry representatives and suppliers in the energy market on Friday “to discuss my concerns around the recent sharp increases in home heating oil and fuel prices, which do not appear to correspond with wholesale trends”.
The issue was raised in the Dáil on Wednesday, with Sinn Féin leader Mary Lou McDonald accusing the Government of being passive while a “brazen rip-off” was happening in plain sight.
She cited the case of a 94-year-old woman who was quoted €464 for a half-fill of heating oil last week, which had risen to €879 by midday on Wednesday.
“This extortionate hike puts this elderly woman under huge pressure, but her options are either pay up or go cold.”
McDonald also said the price of fuel was surging on forecourts, with some reports suggesting the cost of a litre had risen by 10 cent in some cases.
Taoiseach Micheál Martin said it should be three to four weeks before price rises are seen in any petrol station forecourt.
Labour leader Ivana Bacik said the Government could use existing powers under the Consumer Protection Act to “cap the price of home heating oil”. She said the rise in prices was “price gouging, pure and simple” and that “Irish energy bills were already inflated long before this war”.
Martin said “people should not take advantage” of the situation and “there should be no increase” in prices. He said the CCPC was there to make sure there was no price gouging.
However, Dennis Drennan, president of Irish Creamery Milk Suppliers Association, said the group had been “inundated” with calls from farmers “complaining about flagrant price-gouging and price-jacking” this week.
He cited instances of farmers receiving calls on Monday to inform them that quotations for fuel they received the previous Friday were to be disregarded and they could expect to pay 25 per cent more than originally quoted.
He said: “People were infuriated as they knew perfectly well that the suppliers had themselves not paid the new higher ‘war’ prices and were merely using the outbreak of hostilities as an opportunity to gouge their customers”.
He said the only thing “more irritating than being held ransom by greedy and unscrupulous suppliers and companies was the sight of the Irish Government standing to one side, twisting its hat in its hand and pleading with the suppliers to show a bit of restraint”.
A spokeswoman for the CCPC said it had been contacted by a “number of consumers querying the legality of price increases in home heating oil and alleging price gouging”.
It said the law on price increases is clear. “Companies can set, and increase, their own prices but they must do so independently. Prices must be clearly communicated to consumers in advance of any sale. “
The statement said there was “no legal obligation on companies to set their prices at a level that consumers will consider fair. However, equally, consumers can and should take their business elsewhere where they are treated poorly.“
It added that if a company “has agreed a sale with a consumer and accepted payment, then they should fulfil the terms of the order”.
