§ Mr. Frank Allaunasked the Secretary of State for Defence, in view of the fact that the forces obtained 906 million gallons of oil fuels in the financial year 1973–74 at a cost of £86 million, if he will describe how the forces obtain fuel more cheaply than the civilian consumer.
§ Mr. William RodgersThe requirements of the Services for a variety of petroleum products are handled centrally in order to benefit from bulk buying; long-term contracts are placed using competitive tendering so far as is practicable. Most naval oil fuel is collected in tankers of the Royal Fleet Auxiliary Service direct from refineries near the oil producing areas. Certain fuel oils consumed by the Services—for example, for Her Majesty's ships—are exempt from United Kingdom duty and oil consumed in some areas abroad is exempt from local duties.
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