Fuel Prices

Debate between Amber Rudd and Iain McKenzie

Wednesday 21st January 2015 Westminster Hall

[Amber Rudd]

I beg to differ. There has been quite extensive coverage in the newspapers—there certainly has been in my local newspaper—about where there are different prices for petrol, and the fact is that people are seeing a reduction in the price of petrol. The hon. Gentleman will be aware that although the price of oil has a big impact on the price of fuel, it is not, as the hon. Member for Inverclyde said, the only element in the price of petrol. Duty also plays a large part, and I will make some comments about that in due course. Nevertheless, the oil price fall is beginning to have an impact. I am delighted to take part in this debate today, but it is wrong to suggest that the public are not aware of the changes.

[Mr McKenzie]

Is it not the case that the evidence the Minister is basing her argument on—the investigation by the OFT—has been criticised for being flawed?

[Amber Rudd]

I am afraid that the evidence tends not to please everybody. If the hon. Gentleman disagreed with the evidence, I am sure he made that clear at the time. There are groups that would disagree with it; whether that is because they do not like the conclusions of the report or because they doubt the evidence is always open to debate.

Let me say a little more about the 2013 call for evidence; it is relevant to this debate, because it reassures hon. Members and members of the public that we have addressed this issue and looked into it. The OFT analysis found that in August 2012, for example, there was a difference between rural and urban prices; I know that is of particular concern to the hon. Gentleman. Her Majesty’s Treasury engaged with the European Commission to approve the Government’s application for 17 of the most rural areas on the UK mainland to receive a 5p per litre fuel duty rebate. That rebate is targeted at remote areas of the UK that face particularly high pump prices.

--- Later in debate ---

[Mr McKenzie]

I encourage the Minister to comment on the supermarkets’ radius of competition; as I highlighted, in certain parts of the country it is ridiculously small. In those areas, they are competing with themselves, and only themselves.

[Amber Rudd]

The hon. Gentleman’s point about supermarkets is interesting. However, the same is true of fuel as of other products, and the fact that supermarkets compete with one another demonstrates that competition is effective and keeps prices low.

I will just make a quick comment about fuel costs, as the hon. Gentleman commented on the role of the previous Government. In 2011, the Government abolished the previous Government’s fuel duty escalator; we cut fuel duty by 1p a litre in March 2011; and we have scrapped four planned increases in fuel duty during this Parliament. By the end of this Parliament, fuel duty will have been frozen for nearly four and a half years, which will be the longest fuel duty freeze for more than 20 years. The Government are taking action to protect the consumer by keeping fuel duty at a manageable level while ensuring that we concentrate on the overall need to stimulate our economy and constantly reduce the deficit.

[Mr McKenzie]

Will the Minister give way?

[Amber Rudd]

I have a few more points to make, so I hope the hon. Gentleman will forgive me for not giving away.

I reassure hon. Members that, although the price drop is being passed on, we expect more from the fuel providers. We will watch oil companies carefully to ensure that they continue to pass on the falling oil price, which benefits both consumers and the wider economy. Consumers and motorists are entitled to the best value for money, and the Government are determined to ensure that they get it. We will keep this issue constantly under review, and we welcome the impact that it is having on consumers and their weekly costs.

Oral Answers to Questions

Debate between Amber Rudd and Iain McKenzie

Wednesday 22nd February 2012 Commons Chamber

[Mr Iain McKenzie (Inverclyde) (Lab)]

8. What discussions he has had with the Scottish Government on a referendum on independence for Scotland.

[Amber Rudd (Hastings and Rye) (Con)]

10. What recent discussions he has had with the First Minister of Scotland on a referendum on independence for Scotland.