Petrol station owners say fuel duties too high

PETROL STATION owners are calling on the government to reduce fuel duties to stop spiralling prices at the pump, with taxes accounting for more than 57 per cent of the cost of fuel, according to the Irish Petrol Retail Association.

The association said retailers were not to blame for the increasing fuel prices, and said it was seeking the introduction of a “fuel stabiliser” which would reduce duty as international oil prices increased.

“Too often consumers blame the retailer for price hikes, when in fact they have no control over increasing prices. The reality is that retail fuel prices are under pressure due to the increasing price of refined products on the international market,” association spokesman David Blevings said.

The continuing turmoil in the Middle East meant increases in oil prices were likely to continue. Mr Blevings said he understood the public frustration when faced with higher prices, but said petrol retailers operated on extremely low margins and were merely passing on increases and decreases based on the wholesale prices that major oil companies charged.

“There is little sign of the international oil price reducing, and the only way forward, we believe, is for the government to introduce a fuel stabiliser that would reduce duty as international oil prices increased. This would clearly benefit consumers, as over 57 per cent of all fuel sold at the pumps is for taxation.”

Petrol prices hit €1.52 at many stations across the State yesterday, according to price monitor pumps.ie. There was considerable variance in prices, however, with some stations keeping prices at the €1.41 mark.

The disparity in prices depended not only on the location of the service station but on its ability to plan fuel purchases and the contract with its supplier, Mr Blevings said.

Some larger retailers were also using petrol as a loss leader to retain business, he said.

He added he would be writing to the new minister for finance to seek a meeting as soon as possible. “If this problem is not addressed, a substantial number of retailers will go to the wall this year,” he said.

The Irish Road Haulage Association yesterday said it would be meeting with the new minister for transport within the next three weeks to discuss measures to alleviate the pressure of diesel price rises on the industry.

“We are in a very serious situation. The haulage industry cannot be expected to bear these ever-increasing fuel prices,” association president Vincent Caulfield said.

The association is seeking the introduction of an “essential users’ fuel rebate” for licensed hauliers. The duty rebate would have the dual effect of easing the pressure on hauliers and ensuring the industry became more compliant, Mr Caulfield said.

“We have a suspicion that some operators are using green [agricultural] diesel. This would help stamp that out.”