HC Deb 02 February 1976 vol 904 cc948-9
11. Mr. Nicholas Winterton

asked the Secretary of State for Prices and Consumer Protection if she will estimate the total cost to the consumer of the recent oil price increases.

Mr. Maclennan

If the full permitted increases are passed on, it is estimated that this will eventually raise the retail price index by 1 per cent.

Mr. Winterton

The Minister has indicated that this will inevitably work its way through the system. Can he say how oil price increases will affect the Government's counter-inflation policy—because, for many households, the price of oil is a very important cost?

Mr. Maclennan

The impact on the retail price index will be as I have indicated, unless competitive pressures hold down the price below 1 per cent. There is strong competition within the industry, which may have that effect. The hon. Member is right to draw attention to the difficulties that recurrent oil price increases create for Governments, both here and in other industrially developed countries.

Mr. Ioan Evans

What consideration has my hon. Friend given to the confusion now facing motorists outside petrol stations, where they see signs such as "Tenfold Stamps" or "7p off the Marked Price", and other incentives to buy petrol? What consultations is my hon. Friend having with the trade to ensure that the motorist knows what he is paying for his petrol?

Mr. Maclennan

My hon. Friend the Minister of State will have a meeting on Wednesday with the Petrol Retailers' Association and the Motor Agents' Association, when this matter will be raised.