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Fuels: Finance

Volume 470: debated on Thursday 24 January 2008

To ask the Secretary of State for Defence what estimate he has made of the likely savings to the defence budget achievable through the adoption of fuel hedging. (176289)

Fuel hedging would not in the medium or long term necessarily provide any direct savings to the defence budget. However, it would reduce the impact of price changes.

“Government Accounting” precludes the use of fuel hedging to seek savings to the defence budget as this would involve speculation with taxpayers’ money.