To ask the Chancellor of the Exchequer what assessment he has made of the reasons for recent increases in the price of (a) heating oil, (b) petrol and (c) diesel; and if he will make statement. (174912)

The price of heating oil, petrol and diesel are influenced by a range of factors, including international crude oil prices, exchange rates, seasonal factors, level of stocks, refinery capacity, distribution costs and the degree of retail competition.

International oil prices have been high and volatile in recent years, more than doubling between 2004 and 2007, and this has been reflected in the retail prices of all fuels. The rise in prices has been due to a range of factors, notably strong and resilient global oil demand growth, tight refining and production capacity and geopolitical uncertainty in several key oil-producing countries. In 2007 Q4, additional factors including oil supply shortages have also contributed to increased crude oil prices.

Oil price is only one of these factors and there is typically a lag to changes in retail pump prices as retailers absorb temporary changes in oil prices in their profit margins.

To ask the Chancellor of the Exchequer what percentage of the retail price of (a) heating oil, (b) petrol and (c) diesel is accounted for by tax. (174913)

Liability to pay fuel duty only applies to fuel refiners or producers. This is because the point at which the duty is paid is when the finished product leaves the refinery or production plant. Fuel duty is set at a fixed monetary value per litre rather than as a percentage of the retail price.

The duty rates that refiners and producers pay to HM Revenue and Customs were set out in Budget Note 53—http://www.hmrc.gov.uk/budget2007/bn53.htm—published by HMRC on 21 March 2007. As retail prices may vary so fuel duty expressed as a percentage of the retail price may also vary.