§ 22. Mr. Edelmanasked the Minister of Fuel and Power by what percentage output of oil from Britain's customary 1391 sources of Middle East oil supply has risen during the last eight months; and by what percentage the average price of oil has risen or fallen during this period.
§ The Minister of Fuel and Power (Mr. Gaitskell)Output of Middle Eastern oil rose by about 20 per cent. during the first eight months of this year. The average price of oil remained unchanged during this period.
§ Mr. EdelmanIs it not the case that the price of oil has been maintained at an unduly high level owing to the Gulf Price Agreement? Will my right hon. Friend take action in order to break this price ring?
§ Mr. GaitskellI am not responsible for the market price of oil, which is determined by world conditions. I would not say from what knowledge I have that a price ring is at present operating in this matter.
§ Mr. EdelmanIs it not the case that the actual cost of production of Middle East oil is approximately half the cost of production of oil from the Caribbean Gulf?
§ Mr. GaitskellI have no information on that point.
§ Mr. ErrollIs it not the case that the price of fuel oil in this country has recently fallen?
§ Mr. GaitskellYes, Sir, the price of fuel oil has fallen, but it has been balanced by an increase in the price of lighter oil.