asked Her Majesty's Government:

What is the total additional revenue, on an annualised basis, from petroleum and energy products and services at the current level as compared to the total revenue projected in the Budget. [HL3899]

The full impact of higher oil and gas prices on tax revenues will depend on their effect on the economy as a whole.

Higher oil prices generate greater receipts from both North Sea corporation tax and petroleum revenue tax but there are a number of offsetting effects that limit the overall impact on the public finances. These include the impact of temporarily higher inflation on the indexation of tax allowances and social security benefits, the impact from lower demand for fuel on fuel duties and repercussions on other consumption and expenditure taxes and that higher oil costs could affect the profits of other companies.

Updated forecasts will be published in the Pre-Budget Report later this year.