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Oil and Natural Gas: Prices

Question for Department for Business, Energy and Industrial Strategy

UIN 72433, tabled on 9 November 2021

To ask the Secretary of State for Business, Energy and Industrial Strategy, what discussions he has had with oil companies on establishing a review of oil and gas prices.

Answered on

22 November 2021

Despite the rise in prices, the UK continues to have some of the lowest pre-tax prices in Europe for diesel and petrol. The UK’s economic analysis of the relationship between changes in the global crude oil and UK petrol and diesel prices suggests that the UK road fuels sector is competitive and ensures that consumers get good value for money.

Due to multiple factors, in 2021 gas prices have been higher globally, these include: rebounding demand as COVID-19 lockdowns ease; greater liquefied natural gas (LNG) demand in Asia; upstream maintenance affecting summer supply capacity; and unusually low wind periods. Supply and demand are balanced in the market through adjusting the prices at which energy trades take place. The Government has no reason to anticipate that this will not continue. The Government continues to engage with international and industry stakeholders to monitor the situation.