§ Mr. Skinnerasked the Secretary of State for Energy if he will make a statement on the rise in the cost of paraffin and introduce a subsidy for those who use paraffin as a main source of heating.
§ Mr. Gray:Increases in premium paraffin wholesale prices since 1979 have largely reflected increased sterling crude oil costs. In addition, there have been increased unit supply costs as sales have fallen; certain cost increases specific to paraffin production and supply; and normal cost inflation. Paraffin retail prices are set by the retailers concerned, who must have regard to increases in the wholesale price and in their own unit supply costs.
The four United Kingdom manufacturers of premium paraffin gave assurances in 1979 that future wholesale prices would reflect no more than the additional cost of supply compared with the cost of supplying the regular grade. I am satisfied that these assurances have been honoured.
Assistance towards meeting fuel costs—including paraffin costs—is already available through the social security system.