Consumers: Prices
The question
To ask the Chancellor of the Exchequer, whether the Treasury will monitor the evidence after the Strait of Hormuz reopens to ensure that consumers are not continuing to pay higher prices.
Answered by Torsten Bell
HM Treasury has a comprehensive framework for the monitoring, assessment, and management of current and potential risks to the economy, including those posed by the closure of the Strait of Hormuz. The framework involves systematic monitoring of the evidence through internal risk monitors, risk governance forums, and collaboration with other government departments such as the Department for Energy Security and Net Zero, and the Cabinet Office.
We recognise that consumers continue to be affected by the conflict in the Middle East. On 20 May, the Government announced support for households and businesses with their fuel costs. This included extending the temporary 5p cut to 31 December 2026, ensuring there will be no increase to fuel duty this year.
We are seeing fuel prices come down. Weekly road fuel prices from the Department for Energy and Net Zero show that average petrol prices have decreased 3 weeks in a row to 22 June, down over 5p/litre compared to the end of May. A permanent end to the conflict and the full reopening of the Strait of Hormuz is critical for the easing of the economic impacts felt by households.
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