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Oil Industry

Volume 450: debated on Monday 23 October 2006

To ask the Secretary of State for Trade and Industry on which occasions during the last 10 years did stocks of Category 2 refined oil products fall short of the UK's Compulsory Stocking Obligations; and by what proportion stocks of Category 2 products fell short on each occasion when the Compulsory Stocking Obligation was not met. (95080)

[holding answer 19 October 2006]: The following table shows the percentage shortfall in the UK's Category 2 obligation by month since January 1998. Where no shortfall is shown the UK was compliant or in surplus. Data by category are not available prior to 1998.

1998

1999

2000

2001

2002

2003

2004

2005

2006

January

-16

-12

-8

February

-10

-11

-10

March

-8

-3

-7

-11

April

-1

-4

-1

-5

-6

-2

May

-2

-2

-3

-5

-6

June

-4

-2

-12

-2

-3

July

-11

August

-2

-4

-9

-7

September

-3

-6

-5

-11

October

-8

-4

-1

November

-2

-5

-1

December

-9

-7

-5

-4

The failure to meet that part of our obligations relating to Category 2 was caused by market changes, with small companies below the threshold for the obligation entering a supply chain previously dominated by oil companies. In 2003 and 2004 we agreed short-term additional obligations with the industry, which have ensured a surplus in most subsequent months. We also held a public consultation, and are working with industry on a new system, based on product from refineries or entering the UK as imports, capable of meeting the national obligation in the long term.