FTA Ireland calls for transport and logistics support to weather fuel price volatility

The current geopolitical situation in the Middle East is already having an impact on global fuel markets, with sharp increases already seen in domestic heating oil prices.

And with the price of petrol and diesel experiencing notable increases in the past few days, FTA Ireland, which represents those responsible for moving all the goods the country relies upon every day, is urging the Competition and Consumer Protection Commission (CPPC) to review the energy retail market and deal swiftly with any unfair pricing practices.

“Recent behaviour in the fuel market is causing concern for our members, which supply everything in the economy, every day,” said Niall Cotton, chief executive at FTA Ireland.

“Our industry operates on extremely tight margins and cannot absorb rapid input cost shocks. Sustained volatility in fuel prices, particularly those driven by international instability, will place additional, immediate pressure on haulage operations and their viability.

“We need government to consider a suite of targeted, short term and strategic measures, to provide controls in an uncertain global context, which will reassure industry and stabilise operating processes to maintain trading conditions and help our sector to deliver for Irish business.

“Otherwise, uncontrolled price increases will have a significant impact on the trading environment for our sector and, ultimately, the rest of Ireland’s economy, at a time when we need stability in order to keep trading effectively.”

FTA Ireland said it is pressing the Government to take three controlled steps to provide reassurance and stability while global uncertainty continues:

• Explore temporary mechanisms to offset current market volatility and cushion Haulage operators from the impact of rapid price shocks
• Accelerate the CPPC’s review and introduce transparency for fuel retailers to ensure operators can choose solutions with confidence
• Provide temporary support measures for transport and logistics businesses, should market volatility persist, to ensure trading confidence and protect the economy in the short to medium term.

“FTA Ireland is keeping a close watch on global developments,” continued Cotton, “and is requesting urgent and direct engagement by the government to ensure that the impact of price changes outside our sector’s control are not passed on to the Irish transport sector.

“For the sake of our members, it is vital that government works with our sector to ensure unfair price rises are not passed on to our industry, so we can keep Ireland’s economy and society supplied with all that they need, despite pressures created by international events.”