§ Mr. Churchill
asked the Secretary of State for Energy why aviation spirit (Avgas), duty free, is 70 per cent. more expensive in the United Kingdom than Jet A-1 fuel, while in the United States of America the differential is only 15 per cent.; and if he will investigate the matter.
§ Mr. Gray
I have been asked to reply.
United Kingdom companies' schedule—wholesale—prices, net of duty, for aviation gasoline are approximately 35 per cent. higher than for aviation turbine fuel.432W
Comparable figures for the United States, published by the United States Department of Energy, indicate a differential of the order of 16 per cent. In both countries schedule prices are the basis for negotiation of contract prices between consumer and producer. The difference in ratios principally reflects the significant economies of scale available in the production and distribution of avgas in the United States compared to the small and declining United Kingdom market.