The Labour Party has stated today has condemned the Government's "apparent indifference" to rising oil prices.
Although the party agreed that forecasts contained in the Economic Review and Outlook for 2005, published today, are largely in line with the projections given in the budget statement last December, enterprise, trade and employment Brendan Howlin said: "The increase in the Consumer Price Index for July was largely due to the rise in the cost of oil and its knock-on impact on energy prices."
"There are also a number of other factors that could contribute to increased inflationary pressures in 2006... the Government's complacency in the face of this trend is worrying indeed."
Mr Howlin has called on the Government to come up with a strategy for dealing with the rise in oil prices to ensure that the economy and employment are given the maximum protection.
His comments follow calls by taxi drivers on Monday for a 50 cent per trip surcharge to counter high petrol and diesel prices while truckers have threatened nationwide blockades if the Government fails to reduce duty on diesel.
Fine Gael deputy leader Richard Bruton today said that only a small percentage of the hike in domestic and commercial fuel prices can be blamed on the rise in oil prices.
"Of the 15.5 per cent increase in the price of petrol since 2001, only 3.5 cent of this is explained by the increase in the international oil prices, with 9 cent explained by a higher tax take from the Government and 3 cent from higher margins."
Mr Bruton also expressed concern about a sharp fall-off in exports. "Industrial productivity is faltering, and the economy relies heavily on the construction industry and consumerism in order to maintain growth."
"This Government has made the strategic mistake of not using the boom years to develop and sustain key public services and industries," he added.