Oil companies are operating a cartel by hiking the price of diesel, it was claimed in the Dáil today.
Labour leader Eamon Gilmore said diesel used to be cheaper than petrol but it had outstripped it in recent weeks at the fuel pumps.
The Dún Laoghaire TD also said UK retailers were ripping off Irish customers by marking up sterling prices on products by as much as 50 per cent.
He said during Leaders' Questions: "Diesel used to be cheaper than petrol. Today it is €1.39 a litre. Nobody can provide an explanation as to why diesel has shot ahead of petrol and why it is continuing to rise.
"The only explanation can be that oil companies, anticipating a shift to diesel for environmental reasons, are now taking the opportunity to hike up the price.
"It appears the oil companies are engaged in some kind of cartel activity in order to hike up the price of diesel and rip off motorists and hauliers. The latter will have consequences down the line for jobs and businesses."
"These price increases are affecting people every day," he said. "The National Consumer Agency doesn't seem to be doing anything." He called for the watchdog to be more efficient.
Taoiseach Brian Cowen said Tánaiste and Enterprise Minister Mary Coughlan would be discussing the issue with the National Consumer Agency chief executive officer this week.
"The question of profiteering in respect of imports as a result of the difference in the currency exchange rate is a matter for the National Consumer Agency, the Competition Authority and the Department of Trade".