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Armed Forces: Fuels

Volume 479: debated on Monday 21 July 2008

To ask the Secretary of State for Defence what proportion of the increase in his Department's expenditure on fuel costs in the last 12 months has arisen as a result of (a) an increase in unit costs and (b) an increase in the volume of fuel purchased. (220103)

It is not possible to determine precisely the proportion of the increase in the Department's expenditure on fuel1 costs attributable to either volume or price. Over the period 2005-06 to 2007-08, however, fuel volumes consumed in Defence are estimated to have risen by around 5 per cent. Over the same period, the Department's expenditure on fuel rose by around 25 per cent., suggesting that price was the overwhelming factor in the increase in costs.

1 Defined as petroleum-based liquid fuels meeting internationally recognised specifications that are used to power ships and vehicles.