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Oil: Prices

Question for Treasury

UIN 237769, tabled on 27 March 2019

To ask the Chancellor of the Exchequer, what analysis his Department has carried out on the correlation between changes in crude oil prices and changes in petrol and diesel prices paid by motorist at the pumps.

Answered on

4 April 2019

The pump prices for petrol and diesel are affected by a number of factors including the oil price and exchange rate. It is important for motorists to be confident that they are being treated fairly, and that when wholesale costs of fuel come down, these reductions are passed on transparently, and without unnecessary delay.

The Government believes this is achieved through effective market competition. In 2013, the Office of Fair Trading found that competition in the road fuels sector was working relatively effectively, although a competition problem was identified in the market for road fuels on motorways, for which action was taken at Autumn Statement 2014.

The Government will continue to make it clear to industry that it expects it to pass any savings that result from lower oil prices onto customers.

The Government has also frozen fuel duty in every year from 2011 to lessen the impact of high fuel prices on households and business costs. By the end of 2019-20, fuel duty will have been frozen for nine successive years, saving the average car driver £1000 compared to the pre-2010 fuel duty escalator plans.

Answered by

Treasury