HC Deb 16 January 1986 vol 89 cc634-5W
Mr. Woodcock

asked the Secretary of State for Energy what additional capital investment has been incurred by the United Kingdom oil industry as a result of the reduction in the maximum lead content of petrol from 0.4 to 0.15g per litre from January.

Mr. Buchanan-Smith

The United Kingdom oil industry's most recently published figure indicates capital expenditure of the order of £300 million.

Mr. Woodcock

asked the Secretary of State for Energy if he will estimate the extra energy, in terms of barrels of crude oil, that will be consumed at the refinery each year as a result of the reduction in the maximum lead content of petrol from 0.4 to 0.15g per litre from 1 January and, subsequently from 0.15g per litre to unleaded, when the transition to unleaded petrol is complete.

Mr. Buchanan-Smith

For a petrol demand of 20.2 million tonnes, the additional crude oil required per year, when lead levels are reduced, is estimated to beFrom 0.40 to 0.15g per litre (g/1) of lead—some 3.7 million barrels. From 0.15g/1 of lead to unleaded—some 4.9 million barrels.

Mr. Woodcock

asked the Secretary of State for Energy if he will estimate the increase in price that the United Kingdom oil industry will need to charge for each gallon of petrol as a result of the reduction in the maximum lead content of petrol from 0.4 to 0.15g per litre and, subsequently from 0.15g per litre to unleaded, when the transition to unleaded petrol is complete.

Mr. Buchanan-Smith

The manufacturing costs incurred in reducing the lead content from 0.40 to 0.15g per litre are believed to be about 2p to 3p per gallon. For the subsequent move to unleaded petrol, the costs are estimated to be in the order of a further 2p to 5p per gallon.

However, the extent to which pump prices may be increased is purely a matter for individual petrol retailers.