Simon Harris: Measures to Cut Petrol Prices This Tuesday
Simon Harris announces the government will introduce measures this Tuesday to reduce petrol prices, support those at risk of fuel poverty and assist key sectors such as haulage. He warns the global oil market is facing an unprecedented shock and explains why Ireland's fiscal position matters for the response.
Simon Harris says the government will act this Tuesday to try to reduce pump prices, target help at households facing fuel poverty and support critical supply-chain sectors. He stresses interventions should be short-term initially, with options to renew or revise as circumstances evolve.
Harris describes the hit to oil supplies as of the order of 20 million barrels per day, calling it the largest shock to the global oil market. With uncertainty about the duration and depth of the conflict driving these prices, he cautions that prolonged disruption would have real global and domestic economic effects.
The minister highlights Ireland's relative strength: a healthy economy and a significant budgetary surplus that provide capacity to respond. He argues this underlines the value of running surpluses in good times so the state can intervene in shocks without forcing borrowing-cost spikes.
Harris says he will discuss the situation with European finance ministers later in the week and has asked officials for scenario analysis. He also uses the moment to urge acceleration of Ireland's transition towards greater energy independence and reduced reliance on distant fossil-fuel imports.
While expecting continued economic growth this year at a slower pace, Harris stresses the need for nimble policy: targeted short-term relief now, ready to adapt if the conflict and oil shock persist. He closes with a message of confidence in Ireland's ability to get through the crisis, while calling for de-escalation for the sake of living standards worldwide.
Immediate measures and timing
Simon Harris says the government will act this Tuesday to try to reduce pump prices, target help at households facing fuel poverty and support critical supply-chain sectors. He stresses interventions should be short-term initially, with options to renew or revise as circumstances evolve.
Scale of the challenge
Harris describes the hit to oil supplies as of the order of 20 million barrels per day, calling it the largest shock to the global oil market. With uncertainty about the duration and depth of the conflict driving these prices, he cautions that prolonged disruption would have real global and domestic economic effects.
Fiscal position and flexibility
The minister highlights Ireland's relative strength: a healthy economy and a significant budgetary surplus that provide capacity to respond. He argues this underlines the value of running surpluses in good times so the state can intervene in shocks without forcing borrowing-cost spikes.
European coordination and energy transition
Harris says he will discuss the situation with European finance ministers later in the week and has asked officials for scenario analysis. He also uses the moment to urge acceleration of Ireland's transition towards greater energy independence and reduced reliance on distant fossil-fuel imports.
Outlook for households and business
While expecting continued economic growth this year at a slower pace, Harris stresses the need for nimble policy: targeted short-term relief now, ready to adapt if the conflict and oil shock persist. He closes with a message of confidence in Ireland's ability to get through the crisis, while calling for de-escalation for the sake of living standards worldwide.
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Transcript
Hey there, just wanted to have a quick word with you this evening because I'm conscious that people are really feeling financial pressure and they're also feeling great anxiety as a result of the ongoing conflict that we're seeing in the Gulf and the wider Middle East region and the effect that's having. I want you to know the government will take measures this Tuesday to try and reduce prices at the petrol pump, to support those most at risk of fuel poverty and to help key sectors of the Irish economy that we depend on for our supply chains, for example the haulage sector. I do however also want to chat to you about some broader points. The hit to oil supplies that we've seen in the world now is of the order of 20 million barrels per day. This makes it the largest ever shock to the global oil market. At this point there's no clarity regarding the depth and duration of this conflict. This means there's considerable uncertainty regarding the full economic fallout from that shock to oil supplies. I've got to be honest, if the conflict continues for a prolonged period, the impact on the global economy will be real and Ireland will not be immune from such an outcome. But it is important to stress this too. We in Ireland are approaching this global economic challenge from a position of relative strength. Our economy is in good health, we're running a significant budgetary surplus and this does give us capacity to respond and work our way through this. In fact in the past we've often been criticised for running budget surplus and asked why we don't spend all of the available money at one time. This current situation highlights why it's so important to run budget surpluses in the so-called good times. This common sense approach means that when a shock hits our country or our world we have an ability to intervene and respond and that's important. One important side effect from the energy price shock has been that we've seen in countries where they're not running surpluses, where they're running deficits, we've seen their borrowing costs soar. Thankfully that hasn't happened in Ireland because of our favourable economic position and that's helpful too. The intervention that we'll announce on Tuesday will try and strike an appropriate balance between providing help for people now but also keeping some of our powder dry. We've got to do that because nobody knows what this situation will be like in a month from now. We've got to remain nimble, we've got to remain flexible, we've got to give ourselves opportunities to respond to the time ahead. So for this reason I believe any measures we introduce should initially be for a short period, of course with the option to renew them, revise them, adjust them as circumstances evolve. This is what a lot of other European countries are doing and it seems sensible to me because we've got to get this right. I've also asked officials in the Department of Finance to finalise an economic analysis and look at a variety of potential scenarios arising from this conflict and I expect to be in a position shortly to share this with government and indeed to share it with you. But as of now I'm pleased to say I do expect the Irish economy to continue to grow this year, albeit at a slower pace than previously envisaged. Later this week I'll meet with fellow European finance ministers and we'll have a further opportunity to assess the situation collectively. I think it's really important now more than ever that we work together across Europe. This current conflict is also a sharp reminder to the world and indeed it's a sharp reminder to us in Ireland that we've got to accelerate our transition towards energy independence and I'll be discussing this with government colleagues in the days ahead. We can't keep being reliant on fossil fuels from far-flung parts of the world. Finally I want to stress this too. Ireland, the Irish economy, the Irish people, we're going to get through this. I've no doubt about that. That said, the sooner we see de-escalation, the sooner we see an end to this awful conflict, the better for humanity and indeed the better for living standards everywhere.