The leaders of the Coalition will today reject demands from fuel protesters for further Government action when they meet to discuss the continuing impact of the war in the Gulf.
Taoiseach Micheál Martin and Tánaiste Simon Harris will meet senior Ministers and officials at Government Buildings, a day after protests at high fuel prices stopped traffic for hours across the country.
Lengthy convoys of trucks, tractors, coaches and other vehicles brought traffic to a standstill on Tuesday in a national day of protest against rising fuel prices. There were warnings by participants of more disruption to come on Wednesday.
In Dublin, where the largest gathering took place, long lines of vehicles formed along O’Connell Street and on the quays as well as at the entrance to Dublin Port. Protests also took pace in about 25 regional towns, with large crowds gathering in Sligo, Cork, Tipperary and Wexford.
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Protesters demanded immediate Government action to reduce fuel prices and a guaranteed cap thereafter. The day was organised by a grassroots movement of hauliers, farmers, agricultural contractors, plant-hire firms, bus operators and delivery firms.
The Coalition will not, however, agree any new energy or fuel measures. Sources indicate the next decision point on further action is likely to come when the current supports – introduced two weeks ago – are due to expire.
As things stand, there is widespread expectation that the supports will be extended. Senior figures, for their part, have not ruled out further supports.
Speaking yesterday at the publication of the first-quarter exchequer returns, Harris warned of the “extreme volatility” of the international situation. He suggested the Government needed to retain the capacity for future supports if the current energy crisis – prompted by the conflict in the Gulf – continues.
At the same press conference, the chief economist of the Department of Finance, John McCarthy, warned that even “in the best case scenario, all roads lead to higher inflation”.
McCarthy said consumers and motorists would continue to feel the conflict’s impact, even if it ended immediately.
“Higher inflation and weaker economic growth are inevitable,” McCarthy said, adding that the only questions were how much higher prices would go and by how much growth would fall.
He pointed out that the war had already damaged oil- and gas-production facilities in the Gulf, which will continue to keep prices high, even after hostilities end.
The possibility of an extended economic shock, the Tánaiste indicated, would prompt Government caution about further fuel and energy supports in the short-term.
Several Government sources also acknowledged on Tuesday that further supports would come up for discussion if the energy crisis persists.
For now, it is likely that the Government will adopt a wait-and-see approach for the coming weeks, with both Harris and Minister for Public Expenditure Jack Chambers emphasising that they had announced a €250 million package just two weeks ago.
It is understood officials from the National Oil Reserves Agency will tell Ministers today that they have reserves of petrol for 99 days, diesel for 85 days and kerosene for 70 days. A group of senior officials and industry representatives are meeting daily to monitor the situation.
It is expected that the Government will institute a campaign urging people to use energy more efficiently and cheaply, though Ministers know they will face pressure in the coming weeks to do more.
There is some concern in Government that fuel protests could grow, especially as farmers face higher costs going into the sileage cutting season, while the price of home-heating oil is due to increase due to scheduled carbon-tax hikes on May 1st.
