National Consumer Agency Petrol and Diesel Price Analysis

The National Consumer Agency (“putting consumers first”) has published a report on diesel and petrol prices – see Investigation into Petrol and Diesel Price Movements 19 December 2008 http://www.nca.ie/eng/Research_Zone/Reports/Investigation_into_petrol_and_diesel_prices.html.

This turgid document has completely failed to identify and analyse the correct and relevant information to draw a correct conclusion on retail diesel and petrol prices.

The report is an example of detail used to hide an absence of relevance and a failure to grasp the details involved.

The NCA analysis was performed over a very limited four week interval and fails to take a longer term view on petrol and diesel price movements. They failed to identify trends in buy and sell prices of petrol and diesel. As a result the NCA failed to reach the correct conclusion.

There is little evidence to suggest unwarranted delays in the passing on of wholesale price changes to the consumer at the pump.

If this were correct there would be little variability in the margins being achieved by retailers. This is not the case. For a more detailed and relevant analysis, see the following Irish Diesel and Petrol Price Analysis December 2008.

For substantial intervals, buy price falls have clearly not been passed on in the form of reduced sell prices. Price increases are however passed on quickly. Price reductions are passed on slowly if at all. There have been long intervals when falls in the cost price have not been matched by falls in the price charged.

This clearly demonstrates the inadequacy of the analysis performed by the National Consumer Agency. This is an example of the quality of work of Irish civil servants.

Putting consumers first my arse.