Fuel Oil and Liquefied Petroleum Gas: Price Caps
The question
To ask the Secretary of State for Energy Security and Net Zero, if he will make an assessment of the potential merits of introducing a price cap for heating oil and liquefied petroleum gas.
Answered by Miatta Fahnbulleh
The Government’s assessment is that the introduction of a price cap for heating oil and liquefied petroleum gas would not be in the long-term interests of consumers.
The structures of the heating oil and liquefied petroleum gas markets are different from those of gas and electricity supply. Imposing a price cap, which might fall below wholesale costs faced by heating fuel distributors, risks companies exiting the market or not accepting orders when they would make a loss on their fulfilment.
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