Iran War, farming demand, and ‘price gauging’ create ‘perfect storm’ as Leitrim fuel prices skyrocket
Order books surge as farmers scramble to fill tanks following weather turnaround and launch of US war on Iran
Fuel prices have shot up around Leitrim as the conflict in the Middle East sparked to life over the weekend, with retailers nationwide accused of price-gauging.
Global supplies of oil and gas from the Middle East have been disrupted due to the closure of the Strait of Hormuz in southern Iran, which facilitates the transport of around 25% of the world's oil supply.
“Many people are very angry about the way that some retailers have dealt with this situation,” says Councillor Paddy O’Rourke.
“Some people felt that the raises were premature insofar as some of the fuels that went up were already in stock … that didn't seem quite right because one would imagine that it would have been in the storage would have been delivered well in advance.”
Fuel prices at the pumps have jumped massively since the US and Israeli attacks on Iran began on Sunday and are predicted to go above €2 per Litre, while the price of heating fuel has doubled in some areas of the country.
“There's also the suggestion that because most of our oil requirements come from the North Sea, that what happens in Iran shouldn't impact to the extent that's been suggested by the retailers, but I can understand, and probably you can too, that there will probably come pressures on our supply from the North Sea.”
The positive change in the weather forecast has worsened the situation as local farmers look to get work done that couldn’t be done due to poor weather in February, according to O’Rourke.
“Now everybody wants to get out, and everybody wants to fill the tank the same day. Had we had a normal late winter or spring, the tractors would have been out from February or thereabouts. People would have been topping up on a regular basis”
“I'm aware of one medium-sized retailer, and they had an order book of something like 300 by lunchtime on Monday, which would be totally out of kilter for them.”
O’Rourke has stressed the difficulty that this situation has caused for households in rural areas that need to use one or more vehicles on a daily basis.
Some industry leaders have suggested that the government should temporarily dispense with some additional taxes that are applied to fuels, such as the carbon tax, in order to alleviate costs. A step that O’Rourke agrees would “seem a logical step” if the situation continues.
“We have to give it a couple of weeks and see what way does it level out. Maybe some of the diplomacy that's been deployed at the minute behind the scenes might bring heads together to stop this crazy killing.”