§ 1. Mr. CoxTo ask the Secretary of State for Energy if he will make a statement on present petrol prices in the United Kingdom.
§ The Parliamentary Under-Secretary of State for Energy (Mr. Colin Moynihan)Petrol prices are currently estimated to be about 48p a litre for four-star and about 44½p a litre for unleaded petrol.
§ Mr. CoxI thank the Minister for that reply. He will be aware of the recent increases in petrol prices and the effect that they have had on the entire day-to-day life of the country. Can he tell the House something about the agreement made on 13 December by his right hon. Friend the Secretary of State for the Environment, which I understand will lead to a 6 per cent. increase—the equivalent of 12p per gallon—in the price of petrol, to come into force in 1993? The agreement was signed in Brussels with other Euro-Ministers.
§ Mr. MoynihanTo my knowledge, no such agreement was made. Of course, I will look into the specific points that the hon. Gentleman made and ask my right hon. Friend to reply. The hon. Gentleman mentioned prices. They are set by the market and reflect international trading conditions. The recent increases were in line with movements in the Rotterdam spot market.
§ Sir Anthony MeyerIf prices reflect international conditions, can my hon. Friend explain why in Britain, almost uniquely, there is no differential between petrol and diesel prices?
§ Mr. MoynihanI accept that at present diesel prices are only about ½p a litre below unleaded prices. As I am sure that my hon. Friend is aware, the reason for that is that the demand for gas oil, which is equivalent to diesel, is high at this time of the year because it is used for heating. That high demand tends to push up prices.