Sir, – The dramatic price increases at the fuel pumps since the first attacks on Iran are clearly excessive compared to the increases experienced by our European neighbours. Representatives from the fuel importers have given ever complex explanations as to the reasons for this price divergence. Some of these explanations have an odour of self-service.
The big fuel distributors in Ireland and elsewhere use a variety of purchasing methods to smooth out price fluctuations. These include bulk purchasing, fixed price contracts and the trading of futures contracts to guard against spikes in prices.
Whenever there is a hint of regional conflict in any oil producing region, oil companies load up with extra stocks to mitigate any supply issues that might ensue.
Coupled with a lead time of anywhere from two to six weeks between ordering and delivery of stocks to the pumps seems to fly in the face of any attempted justification of these excessive price hikes.
READ MORE
The whole area of price gouging by fuel companies needs to be examined in detail to either allay the fears of the public or to prosecute the offenders.
Michael Moyles,
Stillorgan,
Co Dublin
Sir, – Unless I am mistaken, with my simple analysis of the current spike in oil prices, circa 60 per cent of the price at the pumps arises from Government taxes. Ergo, the higher the price, the greater the revenue collected.
Using a simple example of the price at the pumps rising from €170 to €200, the increase in revenue to the exchequer equates to 18 cents. This equates to an unexpected windfall for the Government of 10.6 per cent.
I look forward to a renewal of the “once-off energy credits” whereby one should be grateful for just simply getting some of one’s money back. – Yours, etc,
Vernon Rushe,
Rathgar,
Dublin 6
