Fuel Prices

Heather Wheeler Excerpts

Thursday 13th September 2012 Commons Chamber

[Robert Halfon (Harlow) (Con)]

I beg to move,

That this House notes the call for evidence by the Office of Fair Trading (OFT) on competition in the UK petrol and diesel market; however, believes that the OFT and Financial Services Authority should launch a full investigation into oil firms active in the UK; calls on the Government to consider the emergency steps being taken in other G20 countries to reduce fuel prices; notes, for example, the announcement by President Obama to strengthen federal supervision of the US oil market and to increase penalties for market manipulation, and the move by Germany and Austria to establish a new oil regulator with a remit to help stabilise the price of petrol in those countries; and further urges the OFT to note that the Federal Cartel Office in Germany is now investigating oil firms who are active in the UK following allegations of price fixing.

I want to make three points today. First, petrol and diesel have never been more expensive in real terms; secondly, oil companies are uncompetitive, and are not passing on cheaper fuel to motorists; and, thirdly, there is increasing evidence that dodgy speculators are rigging the market and forcing up the international price of oil.

I should begin by saying that today’s debate is happening partly because of the work of FairFuel UK, the hard work of Peter Carroll and Quentin Willson in giving a voice to thousands of motorists across the country—in the space of two weeks, they secured 27,000 signatures—The Sun’s Keep It Down campaign, and the work of the independent Petrol Retailers Association, led by Brian Madderson. Above all, however, it is happening thanks to the Backbench Business Committee, which has found time for fuel debates that have had a significant influence on Government policy, and the many Back Benchers who are here today and who have supported me, particularly my hon. Friend the Member for Cleethorpes (Martin Vickers), the hon. Member for Strangford (Jim Shannon), the leaders of Plaid Cymru and the Social Democratic and Labour party, and the hon. Member for Na h-Eileanan an Iar (Mr MacNeil). [Hon. Members: “Western Isles!”] I did practise saying “Na h-Eileanan an Iar” in my office before the debate.

I also thank my hon. Friend the Member for Hexham (Guy Opperman), and many other Members who have been very active. As can be seen on the Order Paper, the motion was signed by more than 80 Members from all parties: this is not a party political issue, but an issue that affects every single one of us and every single one of our constituents.

First, let me say something about the cost of fuel. Of course, much of that cost is tax. We have had many debates on the subject, and I am pleased that the Government not only cut fuel tax last year, but cancelled two planned fuel duty rises. The price of petrol is 10p lower than it would have been if the last Government’s plans had been implemented. However, despite the fuel tax freeze, prices are still rising, and the Department for Energy and Climate Change says that in real terms fuel has never been more expensive.

[Heather Wheeler (South Derbyshire) (Con)]

Will my hon. Friend give way?

[Mr John Baron (Basildon and Billericay) (Con)]

Will my hon. Friend give way?

[Robert Halfon]

Ladies first.

[Heather Wheeler]

I thank my hon. Friend, and congratulate him and the Backbench Business Committee on securing the debate.

My constituents do not understand why fuel prices are still going up, given that we hear so often that the actual quote price has gone down enormously. Perhaps my hon. Friend will say something about that later in his speech.

[Robert Halfon]

My hon. Friend is a great campaigner against high petrol and diesel prices. Her constituents are very lucky indeed. She will hear me make exactly the same observations later.