Petrol Prices

Duncan Hames Excerpts

Wednesday 15th May 2013 Commons Chamber

[Mr Davey]

Like every right hon. and hon. Member, the hon. Gentleman is concerned about the price of fuel and the impact that that has on household budgets. I know from speaking to right hon. and hon. Members who represent rural constituencies how the price of fuel impacts on them. That is one reason why my right hon. Friend the Chief Secretary to the Treasury has paid such attention to the matter since he entered Her Majesty’s Treasury. The Government’s record on bearing down on fuel duty, which is one thing we can directly influence, is exemplary. We have had the longest freeze in fuel duty for 20 years—that is us playing our part.

[Duncan Hames (Chippenham) (LD)]

The allegations of price rigging that are being investigated by the European Commission directorate-general for competition stretch over nearly a decade—they go back over years under the Secretary of State’s Government and over even more years under the previous one. At 8p a litre on the price of fuel, the scale of the price distortions is potentially vast. Given the scale of the impact on consumers’ expenditure and on our economies, how can fines compensate consumers in Britain and on the continent?

[Mr Davey]

My hon. Friend is right to ask that question, but I remind him and the House that we are talking about allegations, and that we are at the early stage of investigations. It is important that people remember that.

One benefit of the investigations by our independent competition authorities is that we can try to ensure that our markets work more effectively. If manipulation is proved, and if it is proved that the manipulation led to higher prices, we could see lower prices, which would be welcomed by many outside the House.