Yesterday in the middle of the night.
We decided then to have a ban now on defacto 90% of Russian
oil imports to the European Union by the end of the year.
And this comes at a time when we see that Russia has
disrupted supplies to buy now five member states.
But as we know, every action has a reaction, and turning off the taps
from Russia is going to mean a shortage of fuel in the continent.
The head of the International Energy agency says this shortage
could be worse than the dark days of the 19 seventies, and
there was more stark news on the inflation front.
New EU figures show Ireland is now sitting on a figure of 8.2%.
All that led the Taoiseach to warn that we are in a
new era when it comes to high energy prices.
One is looking at a different era now, in terms of pricing around fossil fuels.
The war has really exacerbated this, um and created huge pressure.
We will do everything we can to alleviate the pressures on consumers, but
if you look at the e u power initiative and communication is very, very
clear that if you reduce permanently Europe's dependence on Russian gas
and oil that has implications for the global market over time.
Well, for more on this I'm joined by Kyra Feeling, political correspondent
at the Irish Mirror, Green Party TD Marc Ó Cathasaigh, Independent TD Michael
Healy Rae and CEO of Fuels for Ireland Kevin McPartland.
You're all very welcome to the programme.
I want to start with you and those estimates from Eurostat looking at inflation
the highest since records began, I believe and rising it would appear at a quicker
rate even than this government would have anticipated six weeks ago.
Yeah, definitely some very startling figures out today that show energy prices.
Inflation, uh, is skyrocketing.
Energy was estimated to be up 8.2% in May, and actually
an increase in year on year rise was 46%.
And as you mentioned, I don't think the government actually anticipated
how quickly this increase was going to happen.
And obviously with what had happened in, uh, the EU decision last night in
Brussels regarding and the ban on Russian fuel, that's going to play a major
role in how Irish consumers are going to be impacted in a couple of next
couple of weeks to it's going to exacerbate the problem.
Absolutely.
And I think that the T shirt was very, you know, clear in saying that,
uh today to warn people that your energy prices are going to increase
as a result of this ban and what the government needs to do next,
I will see on how they're going to shield consumers.
We have seen the €200 energy rebate come in, but as a lot of people would
say simply not good enough and put more people have less money in their pockets,
their bills are going up and there's no end in sight for people.
And then you can see I think that people you know are really feeling this
and that people's grocery habits even are changing and those figures out
to support that Yeah yeah, figures out by consultancy company company Cantor
today saying that the average annual grocery is going to cost people an extra
€330 a year, and the report also shows the changes in consumer habits,
which again is prove some for some negative reading.
We see hot snacks, which would be health less healthier,
such as frozen pizzas are on the rise up 9%.
Um, and there's actually figures showing that there has been a fall off in the
number of times that a person is actually visiting their supermarket, which
speaks for itself and backs up what we're hearing from the public, saying that
we're actually going without some food and choosing between heating or eating
people trying to really make ends meet and struggling.
And yet, despite all of this, we did also hear Paschal Donohoe are
today and the T shirt out today, you know, reiterating, reiterating
that statement that, you know there's been two billion in measures
here and there will be further cost of living measures.
But it won't be until budget 2023 which is October.
Will they wait five months?
They said that on two separate occasions, and I think that they
might have to give further consideration to that stance.
Give them what has happened in Brussels regarding the changes
and ban on Russian fuel, because, um, you know the many.
They don't like to call it a mini budget, but it effectively
was, It's actually not really helping people now.
There was, you know, the energy credit and it's a once off payment.
There is cut in excise duty on fuel.
But sure, we're seeing the The diesel price of diesel and
petrol is touching €2 again at the petrol pumps.
So it's not really, really having a knock on effect for people, and
I I would imagine that they will have to give consideration to possibly
bringing in some further measures before October.
Kevin McPartlin.
Look, I know you're really conscious of not scaremongering and you know, not making
people you know, overly worried or concerned about the price of fuel.
But we are seeing, you know, prices that pumps getting close to €2 again.
In fact, I think it's gone over to euro and some four courts.
How bad are prices going to get?
And how long is this going to last?
Well, you're right here, and if I just take the chance because you do
say I don't want there to be any sort of scaremongering, all panicking
to suggest that there is an inevitable fuel shortage is untrue.
I think there is a risk and that risk has to be managed, and we're
working hard to make sure that that is that is being done to
answer your question about how high prices can go.
I don't know.
Anybody who tells you that they do know is lying to you.
Okay, apart from any concerns that the CCPC might have
about what I might say on that, nobody knows.
What I can tell you is that the Russian invasion of Ukraine had a massive impact
on the day that it happened on fuel prices, and that impact has continued.
Its got worse in some, uh, different times.
The announcement of the sanctions in Brussels yesterday isn't a massive direct
importance to Ireland because we never imported a lot of oil from Russia.
There was a very market exactly that when you take one third of the entire supply
of oil and gas and the thing we have to recognise with the gas piece countries
in Europe that use gas for use Russian gas for their electricity generation, they're
not going to have that anymore, so they're going to divert to oil.
So what that is going to do is increase the demand for oil at
a time when the supply is going to be squeezed and the junior
economic student will tell you the result of that.
But what are we looking at?
Price wise, do you think?
I mean, there was one point, I think, for a Murphy independent,
and he was talking about, you know, €3.50 a litre.
If there wasn't interventions, we had those interventions
from the government only two months ago.
And yet look here we are again today, over two year old at the at the pumps.
Yeah, and I can't say what it will be.
What I can say is that currently today So So Kerry mentioned that, you know, we
nudging onto euro in some places for for for a litre of diesel people who are
paying to euro for a litre of diesel are paying 86 cent in tax Still.
So despite the excise duty cut that happened back in March, 86% of
that the price per litre is going straight to the government.
And I think it's time government needs to have a look at that
- And the minister of finance today, saying, You
know, we have to strike a delicate balance.
We cannot do more for people.
No government in the Western world can.
Well, that's simply not going to be good enough for the people.
And I will tell you why tonight.
On the way out here, I saw a litre of fuel at 208 cent per litre.
I'd remind the minister that on the Tuesday night when the government brought down
the price of a litre of fuel from 15 and 20 cents respectively, and the previous Monday
and Sunday nights, it actually went up by more than 20 cent per litre.
He, the government keep talking about the €200 and the SB like while
it was very welcome, those measures were very, very small.
When it comes to impacting in a positive way and the people's purse
have continuously said, the most important indicator that we have
of public finance is a thing called Mom's purse.
It's what's inside mom's person on Friday evening and unfortunately, Mom's
purse is get a fair battering at the moment and the people are simply going
to say now that it is not acceptable at this time for the government to
be taking maybe over 65% of the cost of every litre of fuel.
That's not acceptable.
Uh, the government turning a blind eye to our energy security
by telling us because the greens insisted on it that we won't
have an an LNG facility blow and Shannon LNG.
That was a ridiculous and stupid measure for them to bring into the programme for government
in the previous programme for government, it was deemed that we should have an LNG facility
blow there and then in this government, they have said no, just to pacify and and and
and and cause you up to the greens those type of policies.
And remember now the minister is talking about trying to protect people.
And a couple of weeks ago, they were inside the government and they're introducing
more taxes, carbon taxes, and tell us what we have to do.
This, like the government are going to have to realise the pain, the heart,
and the suffering that people are doing going through at the moment and
I'm trying to do is all they're trying to do, Minister.
And don't forget this they're trying to do a thing called exist
and live, and that is extremely difficult at present.
Let the minister respond to that.
Good evening, Michael.
I mean, the point I would make to you is that, you know, as a government,
we have to balance all of the needs that are there.
You will be the first person, along with many others in the doll, in
the lead up to the budget, to look for more money for education, more
money for roads, more money for health care, more money for climate
action measures and a whole range of other issues.
So I have to make sure, along with Minister Donahue,
that we use taxpayer's money wisely.
We absolutely recognise that many people are struggling at this time.
That's why we did bring forward those measures.
But we have to make sure we managed the public finances responsibly.
We're still going to have a deficit this year.
That's the forecast.
The cost of borrowing is rising for the country, so we have to bring the
country through this period, support people in the best way we can.
But to suggest that we can meet all needs and we can do everything and
offset all of the increases as a result of the war in Ukraine is just
not realistic or, in my view, is not being honest with people and touching
that 86 cents that Kevin McPartland talked about that That's the money
the government still takes from fuel at the pumps.
Touching That is not realistic, is it not?
Any further change in excise duty and all matters relating to taxation
care will be a matter for the budget and the finance bill.
And, you know, that's something Minister Donahue will consider, along
with all of the other demands that he has in relation to taxation.
We have to govern for the whole country.
We have to ensure that we have the resources to meet all of the priorities, make sure
we build houses for our people, that we can reform and invest in health care.
So we do have to ensure we strike that right balance, and I acknowledge it's
a difficult one at the moment because a lot of people are hurting.
But our first duty is to make sure we don't make the same, make the situation any worse,
and that we try to bring the country through what is a challenging period