Fuels: Prices

Business, Enterprise and Regulatory Reform written question – answered on 1st July 2008.

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Photo of Peter Atkinson Peter Atkinson Conservative, Hexham

To ask the Secretary of State for Business, Enterprise and Regulatory Reform if he will commission research into the reasons why costs for kerosene have risen more rapidly than those for gas and electricity over the last 12 months.

Photo of Malcolm Wicks Malcolm Wicks Minister of State (Energy), Department for Business, Enterprise & Regulatory Reform

holding answer 24 June 2008

Kerosene is an oil product which means the price of kerosene is directly linked to the cost of crude oil. Crude oil prices have increased by over 80 per cent. in the last 12 months (average May 2007—average May 2008) and these increases have fed through to the price of kerosene. Crude oil prices also impact on the wholesale costs of gas and therefore electricity but over a longer time period of around six months. There are even longer lead-times between changes in wholesale gas and electricity and domestic retail prices. These factors fully explain the recent trends in prices and I see no need for further research into the issue.

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