HC Deb 10 December 1956 vol 562 cc14-7
23. Mr. Dodds

asked the Minister of Fuel and Power, in view of the difficult oil situation arising from events in the Middle East, if he will give consideration to the introduction of price control in an effort to keep down to the minimum an increase in the cost of living.

39. Mr. Rankin

asked the Minister of Fuel and Power if, in view of the recent rise in the price of petrol imposed by the petrol companies, he will now introduce price control.

56. Lieut.-Colonel Lipton

asked the Minister of Fuel and Power why he will not control the price of petrol.

The Minister of Fuel and Power (Mr. Aubrey Jones)

In accordance with their undertaking, representatives of the oil companies and the retail trade consulted me before increasing their prices last week, and I found that these emergency surcharges were necessary. Similar arrangements for consultation made statutory price-control unnecessary both during the last war and after, and I hope they will make it unnecessary again.

Mr. Dodds

Is the Minister aware that this Question was on the Order Paper before the savage increases in prices for petrol and oil? Since it is now obvious that the Government are not concerned with keeping down the cost of living, I apologise to the right hon. Gentleman for troubling him with this detail.

Mr. Jones

I fail to see the connection between the two points and the hon. Gentleman's Question. The fact is that I have approved certain emergency surcharges on the price of oil. I am satisfied that those emergency surcharges are not in any way being exceeded.

Mr. Rankin

Is it really fair to protect the interests of the producer and the retailer while leaving the consumer exposed to the free play of the black market? What is he going to do about persons who have put themselves outside the scheme because they possess private tanks in which they can store great quantities of petrol?

Mr. Jones

As for the producers, they have incurred increased costs in securing extra quantities of oil from other sources. I think it only right that that should be reflected in the price. As to the consumer, I have no evidence that he is being subjected on any scale to a black market. The last part of the question, about petrol tanks, raises a different issue altogether.

Mr. Nabarro

May I ask two questions arising out of the answer? First, under what powers does my right hon. Friend control the price of petrol and associated products? Secondly, can he give the House an assurance that, having approved the increased prices for the purposes to which he has referred as an emergency measure, when the emergency is over the price will come down again?

Mr. Jones

In reply to the first part of that question, I have no power at present to control the retail prices of oil products. Under the Emergency Regulations I may assume such a power, a power I am free to exercise should I wish; but I see no reason as yet to call upon it. I am sorry, but I have forgotten the last part of the supplementary question.

Mr. Nabarro

I asked: when the emergency is over, will my right hon. Friend take steps to see that the prices come down?

Mr. Jones

It was made perfectly clear by the oil companies that the increases were an emergency surcharge, and they were approved on that basis. I have every reason to believe that when the emergency is over the emergency surcharge will disappear.

Lieut.-Colonel Lipton

Is the right hon. Gentleman aware that many people regard the extra 5d. imposed by the oil companies as a rather nasty piece of profiteering on their part?

Mr. Nabarro

Certainly not.

Lieut.-Colonel Lipton

In order to clarify the position, will the right hon. Gentleman produce detailed figures to show how or to what extent this extra 5d. is really justified by the extra costs?

Mr. Jones

I take it that the hon. and gallant Member wants to see extra oil arriving in this country to make good, in part at least, the deficit in supplies from the Middle East.

Lieut.-Colonel Lipton

But not extra profits.

Mr. Jones

In this case the extra costs incurred in getting increased quantities of oil from other sources must clearly be met. It is to cover those increased costs that the emergency surcharge has been approved.

Air Commodore Harvey

Can my right hon. Friend say what is the actual cost of bringing oil round the Cape, or from elsewhere other than through the Canal? Does he recall that on 12th September the Leader of the Opposition said that the cost of bringing it round the Cape or from other parts of the world would be only 1d. a gallon extra?

Mr. Jones

The extra cost of bringing Middle Eastern oil round the Cape rather than through the Canal is about £2 10s. 0d. a ton. [HON. MEMBERS: "How much a gallon?"] That, however, is not the only extra cost incurred. The extra oil from the Western Hemisphere costs much more than Middle Eastern oil—

Lieut.-Colonel Lipton

How much more?

Mr. Jones

That depends entirely on the source, and 5d. surcharge takes into account both those increased costs.

Mr. Rankin

In view of the unsatisfactory nature of the Answer, I beg to give notice that I will try to pursue this matter later during this day's proceedings.