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Gas Prices

Volume 978: debated on Wednesday 6 February 1980

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asked the Secretary of State for Energy what would be the effect on gas prices of raising the wellhead price to a figure equivalent to the posted price for North Sea crude oil.

Gas is not sold at the wellhead in the United Kingdom. If BGC were to pay a price at the beach equivalent to present North Sea oil prices, it would have to pay on average at least 18p a therm more than in 1978–79. Because the costs of gas transmission and distribution have to be added to the beach price of gas, contracted volumes of gas could not then be sold against competition from other fuels.