Fuel Prices

Robert Halfon (Harlow) (Con)
10.  What recent assessment she has made of the effect of petrol and diesel prices on the Welsh economy.

The Parliamentary Under-Secretary of State for Wales (Mr David Jones)
The Government recognise that businesses, individuals and families are struggling with the rising cost of fuel, particularly in rural areas. We have eased the burden on motorists by approximately £4.5 billion through the abolition of the fuel duty escalator and the introduction of the fair fuel stabiliser and by cutting fuel duty.

Robert Halfon
I welcome the Government’s cuts in fuel duty, but the market price of oil is still too high, partly because of oil speculation. The United States is bringing in tough penalties for price fixing and market manipulation. Will the Minister urge his Government colleagues to look at this and put pressure on the big oil firms to cut prices at the pumps?

Mr Jones
As I have said, the Government recognise the impact of the rising cost of fuel on people and businesses in Wales. However, it should be remembered that the duty increase that was expected to take place in January this year has been deferred to August and we have cancelled the inflation increase planned for August, which means that there will be just one inflation-only increase this year.

Mr David Hanson (Delyn) (Lab)
Can the Minister tell us the price of a litre of fuel this time last year and today, and is the rise anything to do with the VAT increase that he voted for?

Mr Jones
The price of a litre of fuel in my constituency—I assume the right hon. Gentleman means petrol—is approximately £1.40. I will be happy to write to him with the figure for last year.