To ask Her Majesty's Government whether they support the European Commission's proposal for a directive obliging member states to maintain minimum stocks of crude oil or petroleum or both; what the cost of implementing the directive would be; and what the effect of the directive would be on oil and petroleum product prices. [HL4405]
This is not a new obligation as the UK is already required by an existing EU directive and through its membership of the International Energy Agency to hold emergency oil stocks for use in oil supply disruptions. We support the new directive as it aligns the EU and IEA systems while maintaining member states' flexibility to design and operate systems best suited to their individual national needs. There will be no additional costs to implement the revised directive since we expect any administrative costs to be absorbed within the existing resources for managing the UK's current oil stocking system. There should be no impact on prices as a result of implementation of the revised directive.