Hauliers are urging the introduction of emergency measures to assist them amid escalating fuel costs tied to the conflict in Iran, reports RTE.
The Irish Road Hauliers Association (IRHA) has cautioned that diesel prices could soon exceed €2 per litre.
In an interview with RTÉ News at One, Ger Hyland, President of the IRHA, stated that diesel prices have been climbing “nearly on an hourly basis at this stage” since the weekend.
He added, “it’s [price] gone out of control”, reports RTE.
Mr Hyland explained that hauliers are reaching out to the association, reporting they are unable to secure fuel supplies for “two or three days” and cannot obtain a firm price until “the morning of the fill”.
He confirmed that higher fuel expenses for hauliers would “absolutely” be passed along to consumers, reports RTE.
“We have no choice, we’re being taxed out of existence,” he said, reports RTE.
Mr Hyland labelled as “phenomenal” the volume of Government-imposed taxes affecting hauliers since the start of this year.
“The road tolls have increased, our minimum wage has increased which has an effect on every wage level up along, we have the auto-[pension]enrollment, and if that wasn’t bad enough the Government put six cent on a litre of diesel,” he said, reports RTE.
He noted that the Government was “taking over 60% of the price on a litre of diesel” through direct taxation, reports RTE.
He demanded an immediate suspension of the carbon tax, particularly for the road haulage industry. “Because everything that you wear from the shoes on your feet to the Corn Flakes on your table, everything, is delivered on the back of a truck, and it’s going to have a huge inflationary effect.”
Mr Hyland indicated that hauliers have not been profitable this year due to added costs since January, “and this coming in on top of it is going to tip a lot of them over the edge”, reports RTE.
He mentioned that the sector has pressed the Government for years to review Ireland’s fuel import system because of “the way the price structure was”.
“The Government needs to wake up here, they’re asleep at the wheel,” he said, reports RTE.
Denis Drennan, President of the Irish Creamery Milk Supplier Association, reported that his group has been “inundated” with complaints from farmers about “flagrant” price-gouging and price-jacking, reports RTE.
Mr Drennan described cases where farmers received Monday calls stating that fuel quotes provided the previous Friday were now invalid, with expectations of paying 25% more than originally indicated.
He said people were furious, aware that suppliers had not yet incurred the new higher ‘war’ prices themselves and were simply exploiting the conflict to overcharge customers.
The Taoiseach stated that no one should exploit the current global uncertainty to raise prices on home heating oil or motor fuel, reports RTE.
Micheál Martin told the Dáil that the Government would continue reviewing support options for households.
He committed to examining the matter in “the broader sense” but ruled out removing the revenue from the carbon tax.
That tax supports fuel poverty payments, aids farmers, and finances home retrofitting, he said, reports RTE.
Mr Martin suggested it would likely take three to four weeks for any noticeable increases in petrol and diesel prices, reports RTE.
Sinn Féin leader Mary Lou McDonald highlighted that substantial hikes in home heating oil prices had already occurred, citing an elderly woman in Wexford whose oil costs had nearly doubled.
She also noted an approximate 10 cent per litre rise at fuel pumps, reports RTE.
Ms McDonald criticised the Government for its inactivity and urged them to abandon plans to raise the carbon tax in the coming weeks.
“You can’t do nothing as these price shocks hit home,” Ms McDonald said, reports RTE.
Labour Party leader Ivana Bacik remarked that people were reaching breaking point amid the cost of living crisis.
She argued the crisis had been intensified by global instability and by Government policies.
What was occurring amounted to price gouging, she said, and she called for Government intervention, reports RTE.
Mr Martin responded that the Coalition had provided both one-off cost of living supports and lasting measures like hot school meals and free schoolbooks, reports RTE.
This comes as Irish shoppers may face higher food prices on shelves due to a fertiliser shortage linked to the closure of the Strait of Hormuz amid the Iran conflict.
This disruption has halted around 20% of global oil and gas supplies, reports RTE.
On RTÉ’s Morning Ireland, Dr Emma Howard, an economist at Technological University Dublin, explained that reduced oil flows through the Strait of Hormuz would tighten supply and drive prices higher.
Oil prices have jumped from $72 (€62) per barrel to $84 (€72) since the attacks started, while gas prices have risen even more sharply, reports RTE.
Prior to the conflict, gas prices on Friday stood just above €30 per megawatt hour, but by yesterday they had reached €60 per megawatt hour, reports RTE.
Dr Howard noted that many products would see price increases because various resources, including fertiliser, pass through the strait.
She said: “There’s a couple of different things for suppliers to worry about. One is they need to factor in the higher cost that they’re facing for buying oil and gas at the moment.
“But secondly, they need to factor in the risk and the uncertainty.”
Dr Howard continued: “As well as the oil and gas going through there, 33% of the world’s fertilisers go through that shipping route,” reports RTE.
“So, if you think of the knock-on effect on crops and the further knock-on impact on animal agriculture, that is again probably going to feed through to higher food prices. Again, the extent of that depends on … how long the conflict lasts for. And obviously, it could just be a spike in prices if this ends soon,” she said, reports RTE.
“But if this is prolonged, we’re going to see a prolonged and persistent and a good spike in inflation.”
Dr Howard pointed out that eurozone inflation rose unexpectedly yesterday, and “we’re already seeing the Iran conflict casting its shadow and the flash estimates for February inflation in Ireland that is at about 2.4%”
“Consumers are probably feeling this in their pockets already,” Dr Howard said, reports RTE.
Tell us your thoughts in the Facebook post and share this with your friends.
