HC Deb 25 July 1977 vol 936 cc1-3
2. Mr. Silvester

asked the Secretary of State for Prices and Consumer Protection what arrangements are being made for the alteration of petrol pump prices following the reduction of excise duty in August.

The Under-Secretary of State for Prices and Consumer Protection (Mr. Robert Maclennan)

Under the Price Code, the reduction of excise duty on 8th August has to be passed on in full in lower price. Any complaints of dealers taking unfair advantage of the motoring public will be carefully investigated. The Petrol Prices (Display) Order, which comes into effect on 12th August, will also protect motorists' interests by requiring prices to be clearly displayed.

Mr. Silvester

How does the Under-Secretary propose to overcome the danger of some petrol pumps running dry at the end of next week because small garages will not be prepared to hold supplies at the higher rate of duty in order to sell at the low rate?

Mr. Maclennan

It was with that possible problem in mind that an amendment to the Finance Bill was passed postponing by three days the implementation of the reduction in excise duty—which I am sure the hon. Member will welcome —to a period after the holiday.

Mrs. Sally Oppenheim

Is the Under-Secretary aware that, following the conversion of petrol pumps to litres, confusion arose precisely as I predicted when the Government first embarked on their metrication programme? Does he agree that that confusion is likely to increase as the Government are not doing sufficient to protect consumers in this respect?

Mr. Maclennan

The only confusion appears to be in the mind of the hon. Lady. She does her best to obscure the clear on every possible occasion.

Mr. Hooson

Can the Under-Secretary confirm that the arrangements are no different from those which apply when there is a rise in the cost of petrol? Is he satisfied that there is no reason for any shortage at this time?

Mr. Maclennan

I believe that the postponement will help to obviate that possibility.

20. Mr. Ioan Evans

asked the Secretary of State for Prices and Consumer Protection if he will make a further statement about petrol price display.

The Minister of State, Department of Prices and Consumer Protection (Mr. John Fraser)

The Petrol Prices (Display) Order 1977 was laid before the House on 30th June and will come into operation on 12th August 1977. We shall, of course, watch to see the effects of the order.

Mr. Evans

Will my hon. Friend take a closer look at the way in which the order is to operate? At the moment there is a jungle. There is complete confusion on the forecourts of petrol stations, with ridiculous prices such as 84.9p per gallon. How can one pay .9p? is not some protection needed in this regard?

Mr. Fraser

The order will not only cover displays outside forecourts but will require the display of information on or near the pumps themselves. As to the percentage point of a penny, when we made the Petrol Prices (Display) Order we had no powers to ban petrol price displays giving fractions of a penny, because the power is contained in the Price Commission Act, but we shall watch the operation of the order carefully.

Mr. Dykes

When the order starts, it will be quite difficult for consumers to see prices clearly displayed on the new modern pumps, particularly the electronic ones, and this will undo for the consumer the good effects of the fall in petrol prices. Will the Minister pay particular attention to this?

Mr. Fraser

I have already paid particular attention to it. Electronic pumps will have to show the maximum price per gallon being charged to the consumer as well as give an indication on the pricing indicator on the pump.

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