Written question asked by Stephen Crabb (Conservative) on Friday, 6 October 2006, in the House of Commons. It was due for an answer on Monday, 9 October 2006. It was answered by Malcolm Wicks (Labour) on Monday, 9 October 2006 on behalf of the Department of Trade and Industry.

Fuel Stocks

Question: To ask the Secretary of State for Trade and Industry (1) what the statutory basis is for maintenance of strategic stocks of (a) petroleum products, (b) natural gas and (c) coal;

Answer: EU member states are required by Directive 2006/67/EC (a codification of previous legislation dating from 1968 and 1998) to hold oil stocks equal to 90 days’ average daily national consumption during the preceding calendar year.There are no similar such EU Directives relating to natural gas or coal and consequently no compulsory stocks for either natural gas or coal.As a net exporter of oil and oil products the UK currently has no obligation to hold stocks through its membership of the International Energy Agency but has an obligation to take part in any collective response to a major international supply disruption, as happened following Hurricane Katrina.The UK has always met these international oil-stocking obligations by directing companies to hold stocks. Section 6 of the Energy Act 1976 allows my right hon. Friend the Secretary of State for Trade and Industry to give directions to businesses producing, supplying or using petroleum products within the UK market, requiring them to hold minimum levels of oil stocks.The Directive (2006/67/EC) provides that as a crude oil producer the UK has a derogation which reduces our obligation by 25 per cent. to 67.5 days’ consumption.Latest figures for July 2006 show that the UK held oil stocks of 11.2 million tonnes, equivalent to 81 days of consumption. Other than military stocks that are excluded from strategic stockholding, all UK oil stocks are held by industry.

Secondary information

Type: Written question
Reference: 92232; 450 c569-70W;450 c575-6W
Session: 2005-06
Related items: Fuel Stocks
Wednesday, 18 October 2006
Written questions
House of Commons
Notes: Information corrected on 18/10/2006 at 450 c1192W in Daily Part and 450 c1198W in Bound Volume.
Subjects: Fossil fuels Stocks of commodities
Link: View this Written question on www.publications.parliament.uk