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Fuel Prices

Volume 450: debated on Monday 23 October 2006

To ask the Secretary of State for Trade and Industry what representations he has received on the price differential between diesel fuel and unleaded petrol in (a) the UK and (b) other European countries; and if he will make a statement. (95608)

[holding answer 20 October 2006]: In recent months, I am aware of four letters to the DTI on the subject of the price differential between diesel and unleaded petrol fuels: three relating to price variation across the UK and one relating to comparisons between the UK and other EU countries.

Petrol and diesel are commodity products whose retail price variation is primarily a result of free market forces, and fuel taxation. In the UK, retail sales of unleaded petrol and diesel are both subject to the same levels of duty and taxation. Fuel taxation in other European countries is a matter for individual states.