HC Deb 14 April 1986 vol 95 cc564-5
3. Mr. Chope

asked the Secretary of State for Energy what steps he takes to monitor the pump price of motor fuel.

The Minister of State, Department of Energy (Mr. Alick Buchanan-Smith)

Sample data on oil product prices are collected by my Department on a weekly and monthly basis.

Mr. Chope

Does my right hon. Friend agree that some major petrol companies are still charging as much as 10p per gallon more than they need to? Will he take this opportunity to pay tribute to the independent retailers for the great work that they are doing in bringing down the price of petrol to the ordinary consumer?

Mr. Buchanan-Smith

My hon. Friend rightly draws attention to the fact that it is highly significant that there is a big variety in petrol prices. It is up to the motorist to demonstrate that he believes the price is too high by purchasing his petrol from the cheapest source.

Mr. Skinner

It is a funny sort of Government who are telling the people involved in the oil industry that they cannot interfere in the price of their fuel, yet, when it came to gas and electricity, the Government were prepared to tax both. Why do they have double standards?

Mr. Buchanan-Smith

For the simple reason that the oil industry is in private hands.

Mr. Beaumont-Dark

Does my right hon. Friend agree that it is important that petrol companies' pricing policy should respond to the market more regularly than it does? Would it not be easier for the companies if successive Chancellors did not use the oil prices as a milch cow so that, whenever the oil price seems to be coming down, Chancellors try to get their hands on what is left?

Mr. Buchanan-Smith

No doubt my hon. Friend will direct his views to my right hon. Friend the Chancellor of the Exchequer, but I agree that there is good reason for lower petrol prices now, as several companies have, perfectly properly and correctly shown the way. There is scope for oil companies, and I hope that they will respond to it.

Mr. Rogers

Further to the Minister's answer to my hon. Friend the Member for Bolsover (Mr. Skinner), is he saying that the Government give special treatment to energy sources that are in private hands compared to those in public hands? Is he saying that there are two levels of Government evaluation in the industry?

Mr. Buchanan-Smith

In response to two earlier questions and as my hon. Friend the Member for Southampton, Itchen (Mr. Chope) pointed out in his supplementary question, I said that we have already seen the scope for independent companies to charge lower prices, for the benefit of the consumer.

Sir Anthony Meyer

Does my right hon. Friend find it as odd as I do that petrol prices along the motorways are virtually identical at every pump? Is he satisfied that competition is as it should be there?

Mr. Buchanan-Smith

I have not personally made a study of petrol prices along motorways, but I notice that along other major routes one finds a big variation between one petrol station and another—even between those in quite close proximity. If my hon. Friend has evidence of any unfairness in competition, I hope that he will draw it to the attention of my right hon. Friend the Secretary of State for Trade and Industry or the Office of Fair Trading. There are powers in the OFT to deal with any anti-competitive action.

Mr. Orme

Does the Minister agree that some of the prices that are now being charged are a scandal? What action will he take to deal with the problem?

Mr. Buchanan-Smith

As other hon. Members have said, and as I have described, there is a wide variety of petrol prices, and the consumer has the opportunity to exercise his choice. That demonstrates the freedom that the consumer has.