As the war in Iran continues to escalate, and chaos engulfs the middle-east, there are widespread fears that the price of oil will continue to sky-rocket and push the cost of living to unsustainable levels.
The Munster Express spoke to Aidan Walsh, Operations Manager, of Byrne and McGuire Oil to understand what was happening on the ground in Waterford.
Mr. Walsh outlined that he has received verbal abuse from the public, similar to staff members of other oil companies and service stations.
“But in fairness a lot of people are very happy when they talk to us too, so it’s not all negative.”
Byrne and McGuire Oil are a Waterford oil company based on the Cleaboy Road. The business started with just one truck by Damien Byrne and Gerry McGuire, and 7 years ago Aidan Walsh joined the company as Operations Manager.
With accusations of price-gouging in the media, and fears that large corporations will use the war in the middle east to increase profits, local fuel companies can sometimes face the brunt of a situation which is entirely out of their control.
“Hand on heart, 100% we do our best for our customers. What we’re about is getting the oil to the people that need it most. And I know that sounds corny or whatever, but these people are our regulars, they might be the cousin of the driver, or elderly people in need,” Mr. Walsh said.
“I had one older lady crying on the phone recently because she was running out of oil and thought she wasn’t going to be able to get more because of everything that’s going on in the world, but we were able to sort her out,” he said.
“We buy oil every day,” explained Mr. Walsh. “Of course, oil is big news but we are hoping this will pass. Oil does go up in price but it also comes back down. Other things like bread or a pint just seem to go up and up and up.”
According to Mr. Walsh there has been a noticeable change in customer behaviour, “People are panic buying—there is a lot of that.”
CCPC investigation
On March 4 the Minister for Enterprise, Tourism and Employment, Peter Burke, called for the Competition and Consumer Protection Commission to investigate accusations of price gouging in the energy industry.
“Our consumer watchdog can avail of a range of powers to investigate and prosecute where clear breaches of the law are evident,” a statement issued by Minister Burke explained. “The CCPC can impose fines of up €10 million in certain circumstances of breaches, or 10% of a company’s turnover.
“A confidential whistle-blowing service is also available for reports of suspected cartel behaviour.”
The CCPC addressed the situation in a statement the same day, explaining that they had been contacted by multiple consumers who were concerned about price increases.
“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.
“There is 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.
“If a company has agreed a sale with a consumer and accepted payment, then they should fulfil the terms of the order.”
All products
Ger Hyland, President of the Irish Road Haulage Association, explains why the oil price shock may have far reaching consequences for consumers.
“Everything you buy — groceries, furniture, clothes and building materials — arrives by truck. If our fuel costs rise significantly, the price of those goods will increase”
“You are going to see higher prices because of this conflict. Government needs to act now and implement a support scheme.”
These comments relate specifically to the price of diesel, which is directly related to the cost of crude oil and commercial markets.
The Irish Road Haulage Association is warning that the price of diesel is likely to exceed €2 per litre, and has called on the government to act immediately to lessen the impact of this shock, suggesting that they lessen forgo tax profits for the greater good of the haulage industry, and the economy at large.
A statement released by the IRHA says, “escalating tensions in the Middle East will almost certainly push pump prices beyond the €2 mark, increasing costs across groceries, construction materials and transport, with particular pressure on rural and small businesses. According to the IRHA, this will drive inflation and hit hard pressed consumers where it hurts.
“Hauliers are calling on government to temporarily suspend some of the taxes, charges and levies on our fuel prices, until the situation in the Middle East is resolved.”
IRHA President Ger Hyland said most of the pump price of diesel is made up of Government-imposed excise duties, carbon taxes, VAT and other levies.
“The association is calling for temporary relief on fuel excise and related charges to offset what it describes as a looming affordability challenge for the wider economy,” he said.
Mr Hyland said hauliers may require a scheme similar to the Licensed Haulage Emergency Support Scheme (LHESS), introduced in 2022, which provided supports for hauliers following surging fuel costs in the wake of the outbreak of war in Ukraine.
The IRHA has said it is monitoring developments in the Strait of Hormuz alongside European counterparts, warning that any further disruption could have a significant impact on Irish fuel prices.
It is understood that Hauliers have written to Tánaiste, and Minister for Finance, Simon Harris seeking support.
60% tax on diesel
Like the IRHA, many opposition TDs are calling for the government to relax their tax take on fuel to lessen the impact of the energy crisis.
The AA calculate that taxes account for 60% of the price paid at the pump for a litre of diesel.
Sinn Féin TD David Cullinane was scathing in his criticism of the government’s response.
“First, they must scrap the planned increase in carbon tax which is due to come into effect shortly. Pushing ahead with another tax increase while fuel prices are soaring would be completely out of touch,” said Deputy Cullinane.
“Secondly the government must now reduce the tax on petrol and diesel during this crisis.
“Third, they need to bring forward targeted cost-of-living supports for households already under pressure.
“Finally, there must be a serious crackdown on price gouging to ensure companies do not use this international crisis as an excuse to rip people off.
“People in Waterford cannot simply absorb these increases. For many families every extra euro at the pump means less money for food, heating or childcare.
“This is not an abstract economic issue. It is a real cost-of-living crisis affecting real people right now.
“This government must stop standing back and start standing up for workers, families, farmers and small businesses,” Deputy Cullinane added.
His Sinn Féin colleague, TD Conor McGuinness, explained that he is being contacted by families in Waterford who are shocked by the huge increases in fuel prices.
“People across Waterford have been contacting me in shock at the huge jump in the price of home heating oil and fuel in recent days,” said Deputy McGuinness.
“Some households are reporting increases of hundreds of euros for a delivery of heating oil, while motorists are also seeing sharp hikes at the pumps.
“Families were already under enormous financial pressure. Now companies appear to be exploiting international events to squeeze even more profit out of households who are already struggling,” Deputy McGuinness added.
AARON KENT
Funded by the Local Democracy Reporting Scheme
