Fuel Prices

Julian Sturdy Excerpts

Thursday 13th September 2012 Commons Chamber

[Roger Williams]

My hon. Friend makes an important point about the affordability of fuel in rural areas. Indeed, Morrisons has just opened a supermarket and petrol forecourt in Brecon; it has reduced prices, and my constituents welcome that. My main purpose in speaking today is to make the point that we still need independent retailers, because it is only their presence that keeps the supermarkets honest. If the supermarkets had a monopoly in rural areas, they would certainly increase their prices.

[Julian Sturdy (York Outer) (Con)]

Will my hon. Friend give way?

[Roger Williams]

I am sorry, but I do not have time to give way.

I am kept informed of issues relating to petrol distribution, and indeed to retail, by Mr Skinner from Glanusk services in Sennybridge. He is an independent supplier of fuel to his community, and he is fiercely independent. He has provided huge service to his area. I remember that the winter before last, during the very cold period, when tankers were unable to access houses, Mr Skinner was selling heating oil in drums. He is really a saviour for the area. He tells me that the distributors who supply him with petrol and diesel are declining in number as one operator takes over another, which is taking competition out of the distribution system. In those circumstances, the independent supplier of petrol and diesel finds it very hard to get a competitive price so that he can remain in business. When this inquiry takes place, my representations will be on behalf of those independent retailers in very remote areas, because we need them in the countryside in order to maintain competition and ensure that the supermarkets do not take advantage of a monopoly position and make fuel unaffordable for my constituents and those in other rural areas.

--- Later in debate ---

[Andrew Bingham (High Peak) (Con)]

Chancellors of all persuasions have increased tax on fuel for many years, and that is why we have the highest fuel taxes in Europe and the second highest in the world. The last Government embraced that tendency with enthusiasm by introducing 12 increases in fuel duty. This Government, however, have done more than any other to help the motorist, by voiding two years’ worth of the last Government’s tax increases. I also welcome the Chancellor’s deferral of the August rise earlier this year, which many of us wanted.

Across the country, businesses and individuals have been hit by fuel costs. When the price of oil goes up time after time, so does the petrol price, yet when the oil price comes down, the petrol price remains steadfastly where it is. This weekend, prices came within about 3p of a record high.

On top of that, there is a discrepancy between rural and urban areas. Fuel is about 133p a litre at the pumps this week; in High Peak, it is as much as 144p a litre—a 10% premium.

[Julian Sturdy]

rose—

[Andrew Bingham]

I shall take two interventions, and this will be the first.

[Julian Sturdy]

I thank my hon. Friend for giving way. Do not oil companies and supermarkets often sell fuel at inflated prices in rural areas to offset the cost of production and the lower prices in urban areas? That is having a huge impact on retailers as well.

[Andrew Bingham]

Absolutely. Unfortunately, rural residents like me have been beaten into submission and pay high fuel prices.

Furthermore, cars are more vital to people living in rural areas than to those living in urban areas. Many Members will not know the small village of Edale in my constituency, although the walkers and ramblers among them will. My hon. Friend the Member for Hexham (Guy Opperman) set off from Edale on his charity walk of the Pennine way earlier this year.