Cost of living: Ireland will benefit from the EU gas pricing agreement, the Taoiseach says

   Image:AP

According to the Taoiseach, the EU gas price agreement will not immediately lower family energy costs.

Micheál Martin asserted that the Government should have "firepower" to assist consumers further with rising costs next year thanks to the cash from a windfall tax on energy corporations.

As he arrived in Brussels for the second day of an EU leaders conference, he made the remarks.

In an effort to lower energy prices, they decided in the wee hours of Friday morning to set a cap on the wholesale price of gas.

Welcome #EUCO agreement on energy last night. Positive that Europe continues to work collectively on this energy crisis to create stability in the market and protect our citizens. pic.twitter.com/HdN324kayb

— Micheál Martin (@MichealMartinTD) October 21, 2022

Everyone benefits from a stable gas market, Mr. Martin told reporters on Friday.

It benefits Ireland. We export quite a bit of goods to the European market. This is development in our eyes.

When asked if the deal will lead to decreased energy costs, Mr. Martin responded, "We import our gas from the UK.

Since our prices are lower than some in Europe, there may not be a noticeable impact right away, but any market stabilisation for gas will ultimately be to our advantage. 

According to Mr. Martin, the purpose of EU policies is to stabilise prices and "prevent surges."

Despite being on a "downward trajectory" since its peak in August, he continued, the price of gas is still significantly higher than it was prior to the outbreak of the Ukraine war.

The Taoiseach stated that the government will use the proceeds from the windfall taxes to "alleviate strain" on households in the upcoming year.

He stated, "We have to make sure we've got sufficient resources throughout the medium term, that's right throughout 2023, because of the way the economy are going across Europe.