asked Her Majesty's Government:

What effect increasing wholesale prices for fossil fuels caused by political instability in some oil and gas producing countries and increasing demand from developing countries will have on the United Kingdom's security of supply and on the economy in general, in particular, on levels of inflation and employment. [HL1148]

The UK is well served with a diverse range of gas and oil importation infrastructure and so is not dependent on supplies from any one source, although the price paid for energy imports will need to reflect global market conditions.

The 2007 Pre-Budget Report and Comprehensive Spending Review (Cm 7227) set out an assessment of the economic impact of recent developments in energy prices (Annex A), and the Government will update this assessment, as usual, in the forthcoming Budget.