§ Mr. Campbellasked the Secretary of State for Energy what oil stocking obligations he is now imposing on the United Kingdom oil companies, following the coming into effect of the Energy Act 1976.
§ Dr. J. Dickson MabonMy right hon. Friend has reviewed the current United Kingdom oil stocking policy in the light of his new powers under the Energy Act, our international commitments and our increasing production of North Sea crude oil. My right hon. Friend proposes to issue new oil stocking directions which will reduce the stocking requirement for the United Kingdom oil refining companies from the equivalent of 85 days' consumption to 75 days. Following previously established guidelines, the stocking requirement for those non-refiners which are subject to a direction will be increased from 55 days' to 60 days' consumption. These directions are within the current IEA and EEC limits on the 111W extent to which stocking obligations can be reduced as indigenous supplies increase, but they should give support to the balance of payments and increase operational flexibilities.