§ Mr. Skeetasked the Secretary of State for Energy for how many years Governments have exercised control over the price of paraffin; and if he will indicate the average market price of kerosene and the controlled price for each year during the past 15 years.
§ Mr. John MooreThe retail price of premium grade paraffin was controlled for five and a half years, from December 1973 until 11 July 1979. For the years of control the average consumer price of standard kerosene and the maximum retail price of premium paraffin were as follows:
pence/gallon Standard kerosene (average) (including tax) Premium paraffin (inner zone), Class C1) average) 1973 (22December) 20.8 21.0 1974 20.8 27.7 1975 23.7 31.5 1976 31.2 38.6 1977 38.9 46.5 1978 39.4 46.5 1979 (10 July) 46.0* 50.6 * Estimate.
§ Mr. Skeetasked the Secretary of State for Energy whether price control over any petroleum products remain following revocation of the Paraffin (Maximum Retail Prices) (Revocation) Order 1979/ 797.
§ Mr. John MooreNo.
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§ Mr. Skeetasked the Secretary of State for Energy what evidence he has that the control over paraffin would result in the diversion of the product to other markets; and whether abroad was envisaged.
§ Mr. John MooreBecause the schedule wholesale price of premium paraffin was held to a level 2.1p/litre below that of the standard grade of paraffin, while it cost about 0.5p/litre more to produce and supply, I understand that some was being purchased for central heating purposes and there was a risk of growing diversion.
§ Mr. Skeetasked the Secretary of State for Energy to what extent the price of paraffin differs relatively from other middle distillates.
§ Mr. John MooreThe wholesale prices of premium paraffin are higher than for other middle distillates because addi-
Coal Oil Nuclear Coal Oil Nuclear 74–75 75–76 Fuel 0.55 0.71 0.13 0.75 0.87 0.25 Capital Charges* 0.12 0.12 0.26 0.14 0.15 0.28 Other 0.07 0.05 0.09 0.08 0.07 0.14 TOTAL 0.74 0.88 0.48 0.97 1.09 0.67 76–77 77–78 Fuel 0.86 1.05 0.34 0.99 1.20 0.40 Capital Charges* 0.12 0.14 0.24 0.12 0.13 0.22 Other 0.09 0.08 0.11 0.12 0.09 0.14 TOTAL 1.07 1.27 0.69 1.23 1.42 0.76 *Capital charges are on the basis of actual expenditure written off on a straight line basis over 20 years in the case of Magnox and 25 years in the case of coal and oil stations with interest at the rate appropriate to each year on the written down balance. Figures for 1978–79 are expected to be available at the end of the month and I am asking the chairman of the CEGB to pass these to the hon. Member together with information on the movement in fuel and operating costs since then.
It is not possible to provide " new build cost " figures for these stations since a new station today would not only have different capital costs and be financed at a different rate of interest but also have more advanced performance than those currently on the system. Indeed in the case of nuclear stations no new Magnox stations are envisaged at all. However the hon. Member may find it useful to compare the capital cost per 814W tional conversion processes are necessary to meet the higher technical standards. I believe this extra cost to be about 2p to 2½1p per gallon.