Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment his Department has made of reasons for the disparity between the trade price of kerosene and that offered to individual consumers; what role his Department plays in regulating and monitoring this disparity; and if he will make a statement.

There is an open market for the supply of petroleum products, including jet kerosene and heating oil, in the UK which provides the best long term guarantee of competitive prices. The Government does not control prices but we do monitor the UK national average cost of jet kerosene and heating oil.

The average cost for wholesale kerosene in September 2016 was 26 pence per litre, 1p more expensive than the corresponding month in 2015, and down 22p since its 2014 peak (Jan 2014).

The average cost for retail kerosene in September 2016 was 37 pence per litre, 1p more expensive than the corresponding month in 2015, and down 22p since its 2014 peak (Jan 2014).

The value of the pound sterling has been decreasing against the dollar which means crude oil, which is traded in dollars, becomes more expensive for UK refiners to import. Analysis suggests that on average, at a national level, crude price changes are fully passed through into kerosene prices within a month.

In addition, the price of kerosene is influenced by a range of factors, including refinery capacity, stock levels, distribution costs, retail margins and seasonal factors The supply of kerosene in more remote areas is influenced by increased logistical costs.

I encourage households that use kerosene to heat their homes to join an oil buying group and to shop around for the best deal.