PETROL and diesel retailers and importers have been accused of “price gouging” after it emerged they have yet to implement significant cuts in pump prices.

This is despite crude oil costs falling to their lowest level since the 2008 financial crisis.

This morning crude prices crashed further after the Saudis decided to slash prices and flood the market with oil. Prices of crude are now down 27pc since the start of the year.

Oil importers are also benefiting from the euro currency surging. This makes it cheaper to buy crude oil as it is priced in dollars.

One of the larger retail chains, Maxol, admitted that its pump prices have only fallen by 2c since crude prices have started diving.

Chairman of the Consumers Association Michael Kilcoyne said it was unacceptable that prices have fallen by small amounts since crude prices have started tanking.

“The industry is price gouging on this. The Competition and Consumer Protection Commission does not seem to be doing anything about it. The industry is making a killing and it needs to be investigated,” Mr Kilcoyne said.

Conor Faughnan of motoring body AAIreland said motorists were feeling extremely frustrated at the slow pace of price cuts.

He said there should be further reductions in prices due to the collapse in crude prices and the strengthening of the euro against the dollar.

“The industry has some explaining to do. Prices are falling but motorist are feeling frustrated as they are not seeing prices falling fast enough,” Mr Faughnan said.

The Irish Petrol Retailers Association (IPRA) insisted that retailers make a very small margin on fuel.

Asked if petrol retailers were making super profits, David Blevings of IPRA said retailers have no control over wholesale price movements.

The Maxol group said: “Since the recent drop in crude oil prices more than 40 of Maxol’s company-owned sites have reduced pump prices by up to 2c per litre and many more will have rolled out the price reductions by this weekend.”

Asked if it was ripping off motorists, the group said crude oil costs were a fraction of the pump price. The price also includes refinement costs, distribution, currency fluctuations, retailer costs, retailer margins and approximately 60pc of the price goes to the government in taxes.

Applegreen said it was not able to comment as it was busy “planning for the coronavirus”.

The Irish Petroleum Industry Association, which represents companies that import and distribute petroleum products, insisted it was unrealistic to expect big price cuts at forecourts due to drops in crude costs.

Asked if the industry was engaged in price gouging , it said: “Crude oil accounts for less than a quarter of the costs of diesel and petrol so it is unrealistic to think that the price an Irish motorist pays at the pump will track that of a barrel of crude. Taxes, levies and excise make up the bulk of liquid fuel costs.”

The Petroleum Industry Association said it was also important to recognise that currency fluctuations have a major impact.

Margins are small and competition is fierce in the Irish market, spokesman Kevin McPartlan said.

Large displays near the roadway ensure consumers can always compare prices and get maximum value, he added.





Irish Independent