Border oil price disparities raise growing concerns
Recent reports indicate a significant increase in heating oil prices, raising concerns about border oil price disparities. It now costs an additional €80 to purchase 1,000 liters of home heating oil compared to a month ago. This discrepancy between prices in the Republic of Ireland and Northern Ireland has sparked discussions about potential risks and safety issues related to cross-border fuel purchases.
Widening Price Gap
The Irish Independent highlighted a growing gap in heating oil costs across the two regions. Kevin McPartlan, representative of Fuels for Ireland, expressed concern over residents traveling across the border to find cheaper fuel. On the Joe Finnegan Show, he pointed out the significant price and tax differences influencing consumers’ choices.
Tax Disparities
- VAT on gas: 9%
- VAT on home heating oil: 13.5%
McPartlan argued that these tax differences impose an unfair burden on communities near the border, such as Clones. He suggested that the government should reconsider VAT rates on home heating oil to alleviate financial pressure on residents.
Risks of Cross-Border Purchasing
Tommy Sheahan from North Pole Fuels in County Cavan also addressed the issue on the Joe Finnegan Show. He reported a stark difference in coal prices, stating that a 20kg bag sells for €7-€9 in Northern Ireland, while in the Republic, it ranges from €14-€16.
Dangerous Transport Practices
Sheahan noted that many individuals are transporting fuel across the border in unsafe conditions. Vehicles are often loaded with drums of oil, leading to spills that render roads hazardous. He stated, “They’re bringing oil in the boots of their car in drums, and the tops are opened,” which has resulted in road cleanup efforts by fire services.
Both McPartlan and Sheahan agree that while the pursuit of cheaper fuel is understandable, it poses significant risks. They emphasize the need for governmental action to address these disparities, ensuring residents can access affordable heating oil safely.
