HC Deb 29 April 1974 vol 872 cc758-60
22. Mr. Leslie Huckfield

asked the Secretary of State for Energy whether he is satisfied with oil and petroleum wholesale and retail distribution; and whether he will make a statement on the Government's future policy.

Mr. Strang

The Government keep a close watch on all aspects of the United Kingdom oil market and will continue to do so in the future.

Mr. Huckfield

Does my hon. Friend recall the undertaking given by the oil companies to the Monopolies Commission in 1965 that they would not acquire any more retail outlets? Does he also recall that in 1968 they were allowed by the Labour Government conveniently to forget that obligation? Does he still think that the major oil companies should be allowed to increase their hold over retail outlets for petrol?

Mr. Strang

I am aware that there is concern about the growing trend towards company ownership of petrol stations. I am sure my hon. Friend realises that the question of making a reference to the Monopolies Commission is for my right hon. Friend the Secretary of State for Prices and Consumer Protection.

Sir Bernard Braine

Is the hon. Gentleman aware that my constituents are totally dissatisfied with the policy of successive Governments of locating oil refineries close to residential areas—in the Thames Estuary, for example—because the oil companies argue that that is where their distribution chains are located? Is he further aware that the local authorities and I have asked the Government to revoke planning permissions for at least two refineries? When shall we get a decision on this matter?

Mr. Strang

The Government are looking closely at the whole question of refining policy. I know that there is some sympathy with what the hon. Gentleman has just said.

Mr. Arthur Lewis

On the part of the Question referring to oil, will the Minister consider a matter which is gravely affecting large areas, particularly the poorer parts, where old-age pensioners, immigrants and people in a similar position must rely upon paraffin for heating and cooking? I do not know why my hon. Friends should laugh, because it is hardly a laughing matter when people have to pay 25p a gallon for paraffin. Can my hon. Friend do something to ensure that there is a cheap supply of paraffin for old-age pensioners, the sick and immigrants who must rely upon it?

Mr. Strang

The Government are well aware that the sharp increases in paraffin prices have had adverse effects on people on low incomes. Although we cannot hold out much hope of reducing the price of paraffin, I am sure my hon. Friend will recognise that the forthcoming very substantial increase in pensions will help to alleviate the pensioners' situation.

Mr. David Howell

Is it still the Government's policy, as enunciated by the Prime Minister both before and since the election, I think, to set up small regional buying organisations to buy North Sea oil and then sell petrol cheaply for use in school buses and by other deserving organisations?

Mr. Strang

If the hon. Gentleman takes the trouble to read what the Prime Minister said, he will see that my right hon. Friend listed that as one of a number of options available to the Government in their present review.

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