Putting the price of petrol and diesel up is “good business” and simply reflective of rising international costs, the Chief Executive of Fuels for Ireland has argued. 

In the wake of the American and Israeli strikes on Iran, the price of oil and gas has increased. 

Brent crude oil is now selling for $84 a barrel - up from $66 last Friday, before the strikes were launched. 

In response, fuel supplies have increased their prices; with the cost of home heating oil reportedly up 50% at some retailers. 

Enterprise Minister Peter Burke has summoned industry representatives for a “frank discussion” and warned that an investigation by the Competition and Consumer Protection Commission is underway. 

On Newstalk Breakfast, Fuels for Ireland CEO Kevin McPartland explained that the price drivers pay at the pump is reflective of international markets. 

“Tanks in the terminals in Dublin port or the ports in the home heating or depots in forecourts are topped up on sometimes many times in a single day,” he explained. 

“So, the pricing is extremely dynamic and we always see it when there's these sudden spikes in pricing.

“There are deliveries coming in by ship more than once a day very often - so, that hasn't been sitting in a tank. It could have been delivered this morning -or it could be delivered overnight - and go out in a tanker right now. 

“That's the reality of how quick the logistics operation is… And right now when demand is so very, very high, the lag time is shrinking it further.”

An oil tanker at sea. Picture by: Alamy.com.

Former energy minister Eamon Ryan has argued that while Ireland cannot “protect ourselves against the price rises that are coming”, sudden price increases are unnecessary. 

However, Mr McPartland said businesses have increased their costs in anticipation of higher prices that seem highly likely.

“Okay, let's just pick a number out of the air,” he continued. 

“I paid €1.60 last week for my stock, but the replacement cost, I'm getting it once a week, the replacement cost is now €1 or maybe €2.

“Then they are going to factor that in. I mean, that would seem good business.” 

Filling a car at an unleaded petrol pump. Picture by: Alamy.com.

Mr McPartland added that the industry was subjected to the same accusation of ‘price gouging’ in the aftermath of the invasion of Ukraine. 

Back then, the cost of Brent crude oil soared to as high as $118 a barrel. 

“We had senior politicians using the exact script they're using now, the same language, the same people even and they referred it to the Competition and Consumer Protection Commission,” Mr McPartland said. 

“The CCPC gave conclusions; it found no indications of coordinated pricing behaviour in the data.

“It concluded that rising international prices drove increases in prices at the pump. 

“And it concluded that the difference between pump prices and the wholesale price generally remained within the normal range for the industry.”

Main image: A motorist queues to fill up. Picture by: Colin Keegan, Collins Dublin.