Tanaiste welcomes release of oil reserves by International Energy Agency

There should be “no lag” in energy companies reducing rates if oil prices stabilise, the Tanaiste has said.

Simon Harris said he was hopeful a decision by the International Energy Agency to release oil reserves would have a positive impact on prices for consumers and businesses.

The 32 member countries of the agency agreed today to make 400 million barrels of oil from their emergency reserves available to the market to address disruptions stemming from the war in the Middle East.

The Finance Minister said the action “makes sense” as it would increase supply and give certainty in the market in the coming weeks, reducing volatility.

This week, EU energy commissioner Dan Jorgensen said it was unacceptable that Europeans are struggling to pay utility bills on time – as he recommended that governments should lower taxes and levies on energy.

Asked if the Irish Government was reluctant to follow that advice due to the benefit to the Exchequer, Mr Harris said: “No, I think the context of what the energy commissioner was saying was that while there’s things that can be done at a European level, there’s also things that are available in the toolkit of a member state.”

Mr Harris said he remained “deeply concerned” that prices at fuel pumps had not fallen with reductions in oil prices.

Speaking to reporters in Paris, he said the Government was not ruling out action but said any steps taken had to be “appropriate”.

He also said that home heating oil fills happening before the summer months would not be affected by the carbon tax increases on May 1.

“We’re genuinely working on this, we’re monitoring this, and we’re working with European colleagues – but the most helpful thing we can do right now is try and ensure positive news around supply,” he said.

Asked about the cost of home heating oil increasing at a far higher rate in Ireland than the rest of Europe, the Tanaiste said the fact that the country uses kerosene was a factor in the disparity.

However, he said the speed at which companies “hiked up their prices” following the outbreak of war was “instantaneous” and “concerning”.

He said that, if oil prices stabilise, energy companies should not have any “lag” in reducing their rates.

The Finance Minister said: “The speed at which prices rose was a lot quicker than the economic advice available to me suggested it should have.

“And all I’m saying is, if you were able to hike up the prices that quickly, if we get to a situation – it’s a very big if, because there’s huge volatility at the moment – but if we get to a situation where there’s some stabilisation in oil prices, I hope those who hiked things quickly would be as quick to reduce things.”

Mr Harris said he hoped a Competition and Consumer Protection Commission (CCPC) probe into price increases in home heating oil and fuel would be “urgent and thorough”, adding it was his belief that it would take a matter of weeks.

He said it “really needs to be scrutinised” how different filling stations saw big disparities in price increases since the war.

He said the CCPC had powers to fine companies millions of euro and secure convictions in the courts.

While Mr Harris’ visit to Paris was ongoing, French President Emmanuel Macron held a Nuclear Energy Summit in the city on Tuesday.

European Commission president Ursula von der Leyen told the conference that the decision to reduce the share of nuclear energy in the EU’s electricity production mix was a strategic mistake.

Asked for his view on the comments, Mr Harris said the two leaders were right to be highlighting energy security as the EU was “too reliant on fossil fuels” from outside of the bloc.

However, he said Ireland had no plans to change its energy framework and added that renewables was an area where progress needed to be made.

Ireland is on track to miss its renewable energy targets up to 2030, at a potential cost of billions of euro in penalties.

He said: “From an Irish perspective, we have to be restless now about being able to deliver energy infrastructure in a more speedy manner.”