Petrol Supplies

Oral Answers to Questions — Trade and Industry – in the House of Commons at 12:00 am on 23rd July 1973.

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Photo of Sir Gerald Nabarro Sir Gerald Nabarro , Worcestershire South 12:00 am, 23rd July 1973

asked the Secretary of State for Trade and Industry whether he will make a statement on forthcoming petrol supplies having regard to the prognosis of a fuel crisis in Western Europe and North America, including a shortage of petrol supplies during the years 1974–75 and thereafter.

Photo of Mr Thomas Boardman Mr Thomas Boardman , Leicester South West

No, Sir. There is no general shortage of petrol in the United Kingdom at present and none is expected. However, the supply situation is kept under close review by the Government.

Photo of Sir Gerald Nabarro Sir Gerald Nabarro , Worcestershire South

The reports reaching me and others say that many thousands of retail establishments are likely to run short of petrol and associated fuels at a very early date. Does my hon. Friend recall, for example, that only yesterday a banner headline in the Sunday Telegraph announced that 8,000 establishments would run out of petrol shortly? Is all this to be lightly discarded by no ministerial answer at all?

Photo of Mr Thomas Boardman Mr Thomas Boardman , Leicester South West

Yes, I am aware of the reports, which I have seen. They are not borne out by the facts as so far reported to me, although I am keeping close watch on the matter.

It is correct, as I understand it, that some major companies, while not restricting their supplies, are charging for oil on a wholesale basis instead of giving rebates and special discounts. A number of independent companies previously bought spot oil wherever it was available, but due to the fluctuations in price this is not so easily obtained.

Photo of Mr Michael McGuire Mr Michael McGuire , Ince

Does the hon. Gentleman agree that the best way for this country to avoid a serious energy shortage in the next decade and beyond is to develop to the full our indigenous coal industry? Does he agree that the bedrock for the coal industry is the generation of power by coal, and that what we want is an expanding power station programme for coal? When can the Minister make an announcement on Drax and West Burton?

Photo of Mr Thomas Boardman Mr Thomas Boardman , Leicester South West

We have been concentrating massive help on the coal industry and recognise its value as well as the value of the North Sea and our nuclear programme. These are all important elements in our energy policy.

Photo of Mr Trevor Skeet Mr Trevor Skeet , Bedford

Does my hon. Friend agree that talk of a fuel crisis in the United Kingdom is being thoroughly overdone? When does he think that the Forties and other fields will come into operation? How many will be available by 1977?

Photo of Mr Thomas Boardman Mr Thomas Boardman , Leicester South West

I agree with my hon. Friend that there is too much talk about crisis. Far too much of it relates to the different situation in the United States of America. It would be wrong to be complacent, and it is for that reason that we are giving the support which we are. With regard to the Forties and other fields, I direct my hon. Friend to the report to Parliament published about six weeks ago giving an indication of when the oil will start to flow.

Photo of Mr Alexander Eadie Mr Alexander Eadie , Midlothian

Apart from the information we receive that, if inflation continues at its present rate, petrol could easily become El a gallon in three or four years' time, is the hon. Gentleman aware of reports that independent retailers of petrol are likely to find difficulty and are talking about going out of business? Will the first signs of this happening be that there will be fewer petrol stations retailing petrol in the United Kingdom?

Photo of Mr Thomas Boardman Mr Thomas Boardman , Leicester South West

We know of two companies that have given a warning to some of their non-contractual customers that they may not be able to supply them much longer. The Government are looking into the situation and are keeping abreast of what is happening and will wish to know from the oil companies what their plans are in this matter.