Petrol (Hansard, 30 June 1975)

§ 8. Mr. Ridley
asked the Secretary of State for Energy if he will give the figures for petrol consumption for the first quarter of 1973, 1974 and 1975, respectively, in the United Kingdom.

§ Mr. John Smith
Deliveries into consumption of motor spirit in these periods were respectively 3.85, 3.57 and 3.55 million tons.

§ Mr. Ridley
Do not these figures show that petrol is really no longer to be regarded as a luxury but as an essential? In view of the great hardship that the Government's swingeing tax increases on petrol have caused to many people, particularly those living in the country and relying on the car, will the hon. Gentleman switch the basis of taxation from petrol spirit to crude oil, which would provide a much more equitable basis?

§ Mr. Smith
The hon. Gentleman has canvassed this possibility before. Petrol spirit makes up a large part of the consumption of oil in this country. The policy seems to be working, to the extent that consumption is down significantly —8 per cent. as compared with the same period of 1973, against a background of a constant annual increase of 5 per cent. before that. The hon. Gentleman must bear in mind that if the tax burden is shifted it will fall on other shoulders. Perhaps the hon. Gentleman wants to increase the cost of central heating fuels, for example. If so, he should say so clearly.

§ Mr. Kelley
Will my hon. Friend advise the Secretary of State to get rid of the nonsense announced by his predecessor about speed limits? The lower the speed limit, the less the consumption of petrol. I find on my journeys to this House that large, mainly foreign, cars are travelling at 100 mph on motorways and dual carriageways when the limit should be 70 and 60 mph, respectively. Will my hon. Friend put the thing right and get rid of that nonsense?

§ Mr. Smith
My hon. Friend is asking me to give a reply on a matter on which information is not yet complete. We do not know what effects the changed speed limits have had on the consumption of petrol. It is already complicated by the fact that other factors, such as price, are affecting consumption. But the matter will be kept under review. The speed limits are due for review on 30th November, and in the light of the information we shall be reviewing the policy before then.