HC Deb 23 April 1986 vol 96 cc178-80W
Mr. Austin Mitchell

asked the Secretary of State for Energy what is the relationship between the cost of natural gas in the United Kingdom and the price of oil; and if he will publish in the Official Report a table showing the change in the price of gas to consumers since May 1979 compared with the rate of inflation.

Mr. Buchanan-Smith

There is no simple relationship between the price of oil and the cost of gas to final consumers, since the cost to the BGC of buying gas is only partly indexed against oil and other factors, such as BGC wages, and so on, affect the delivered cost. The change in the price of gas to consumers since May 1979 compared with the rate of inflation is as follows:

Domestic Gas Price Index 1980=100 Retail Prices Index 1980=100
Average per cent. change year on year Average per cent. change year on year
May 1979 82 82
Average 1979 86 85
Average 1980 100 16 100 18
Average 1981 126 26 112 12
Average 1982 157 25 121 8
Average 1983 176 12 127 5

Domestic Gas Price Index 1980=100 Retail Prices Index 1980=100
Average per cent. change year on year Average per cent. change year on year
Average 1984 182 3 133 5
Average 1985 190 4 142 7
March 1986 192 1 145 2

Industrial Gas Price Index 1980=100 Retail Prices Index 1980=100
Average per cent. change year on year Average per cent. change year on year
Q2 1979 70 82
Average 1979 73 85
Average 1980 100 37 100 18
Average 1981 122 22 112 12
Average 1982 129 6 121 8
Average 1983 131 2 127 5
Average 1984 135 3 133 5
Q3 1985 144 7 143 8

Notes

In each series the gas price figures are the latest available.

The industrial price series is not available on a monthly basis.

Mr. McQuarrie

asked the Secretary of State for Energy if he will discuss with the chairman of British Gas the reason for the latest increases in gas prices to the consumer, in view of the considerable reduction in oil prices; and if he will make a statement.

Mr. Buchanan-Smith

Gas prices are the responsibility of the British Gas Corporation. However, before making changes to tariffs it is obliged by statute to consult the National Gas Consumers Council. This it did recently. I have made a statement on the relationship between oil and gas prices in a separate answer today to the hon. Member for Great Grimsby (Mr. Mitchell).

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