Fossil Fuels: Prices

Department for Energy and Climate Change written question – answered on 11th March 2015.

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Photo of Jason McCartney Jason McCartney Conservative, Colne Valley

To ask the Secretary of State for Energy and Climate Change, what comparative assessment he has made of trends in pump petrol prices and oil prices.

Photo of Matthew Hancock Matthew Hancock Minister of State (Department for Business, Innovation and Skills), Minister of State for Portsmouth, The Minister of State, Department of Energy and Climate Change

Movements in pump prices are primarily driven by crude oil prices; though are also influenced by a range of other factors; including tax, refining capacity, stock levels, distribution costs and retail margins.

The Government has been absolutely clear that it expects changes in crude prices to be passed on fairly to consumers. DECC continuously monitors pump prices, and publish average prices of petrol and diesel every Monday, available at:

https://www.gov.uk/government/statistical-data-sets/oil-and-petroleum-products-weekly-statistics.

We have also cut then frozen fuel duty, leaving it 20p lower than previously planned.

DECC analysis has shown that crude price changes are reflected in pump prices and suggests that on average, at a national level, sustained crude price changes are fully passed through into pump prices within 6-7 weeks; though much of the change is passed through earlier. The analysis found no evidence to suggest there is a difference in pass-through times between crude price rises and falls.

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