§ 12. Mr. W. Fletcherasked the Minister of Fuel and Power whether, in view of the fact that distribution costs account in large measure for the high price of fuel oil, he will consider favourably the application made by the Bury Felt Manufacturing Company that they should purchase the fuel oil c.i.f. from the port and use their own transport to bring it to the factory, thereby making a considerable yearly saving in production costs.
§ Mr. GaitskellDistribution costs amount on the average only to about 15 per cent. of the selling price of heavy fuel oil to inland consumers and I cannot therefore agree with the hon. Member that they account in large measure for the present price of fuel oil. The Petroleum Board can only maintain distribution costs at this low level by spreading them over all 259W deliveries within each zone, and I see no reason why an exception should be made in the case of this firm.
§ 13. Mr. W. Fletcherasked the Minister of Fuel and Power whether he is aware that with its latest increase in price, firms are paying considerably more for their fuel oil than at the price ruling when they were encouraged to convert to fuel oil consumption by the Government last winter; and whether he intends to take steps to alleviate the unfair burden this has placed on many firms.
§ Mr. GaitskellYes, but the increase is due to a rise in the world price of oil, over which I have no control, and must be acepted as a normal commercial risk.