HC Deb 08 December 1975 vol 902 cc11-3
6. Mr. Les Huckfield

asked the Secretay of State for Prices and Consumer Protection whether she will now make a further statement on petrol retailers' margins.

Mrs. Shirley Williams

The Price Commission's final Report on Motor Fuel Retailers' Margins was published in August. It concluded that gross and net margins had fallen and were unlikely to recover until the market adjusted to a smaller retail network.

Mr. Huckfield

Is my right hon. Friend satisfied with that situation? Is she not aware that before the last price increase many chains were offering up to 15p discount on retail prices, and that even now, after the recent price increase, we still have discounts of up to lop or 15p being offered? If that kind of discount can be offered, why was a price increase granted?

Mrs. Shirley Williams

The price increase was granted on the basis of United Kingdom costs, not on the basis of world-wide costs. However, I share my hon. Friend's disquiet. Consequently, we shortly expect to make a reference to the Monopolies Commission with regard to the relationship between the oil companies and the retail outlet. My hon. Friend may also like to know that we have mounted a separate inquiry involving the representatives of my Department and those of the Department of Energy into the way in which retail prices are established by the oil companies.

Mrs. Sally Oppenheim

Is the right hon. Lady aware that I have asked the Director General of Fair Trading to proceed with a reference to the Monopolies Commission without further delay?

Mrs. Shirley Williams

I am not sure who is the Minister—the hon. Lady or myself. However, I can assure her that I have done so, lest there be a confusion of identity between us.

Mr. David Steel

In referring this matter to the Monopolies Commission, will the right hon. Lady ask the Commission to consider the recently expanding practice of the oil companies in charging more for smaller quantities of fuel and thus virtually ending retail controls for some rural outlets, where the tanks are not large enough to take the amounts of oil which the companies dictate? This results in an increase in price to people in rural communities.

Mrs. Shirley Williams

I am anxious that there shall not be discrimination of this kind in rural areas. A number of references for special inquiries have been made to the Price Commission on this aspect of small quantities in remote areas. It is certainly a matter which I shall ask the Director General to take into account in connection with the reference.

Mr. Wigley

Is the right hon. Lady aware that although in many cities 15p discounts may have been available, in rural areas in Wales they are not available, and it is not possible to find them by shopping around? Is she further aware that in such areas motor car transport is a necessity and not a luxury? Will she consider by what mechanics safeguards can be provided in these areas?

Mrs. Shirley Williams

Yes. I would only add that the pattern of discounts has been very disparate in different parts of the United Kingdom. What my hon. Friend has said about rural areas is also true of a number of cities.