§ Mr. Arthur Lewisasked the Secretary of State for Energy whether, by a reduction in taxation or otherwise, he will seek to bring about a reduction in the price of North sea oil.
§ Mr. GrayThe price of United Kingdom North sea oil reflects the world market price. It is not set by the Government but is established through negotiations between BNOC, which trades over half our North sea production, and its suppliers and customers. A reduction in the taxes paid by producers would not lower the price of crude oil, but would increase the proportion retained by the companies concerned.