Written question asked by Lord Moonie (Labour) on Monday, 1 October 2018, in the House of Lords. It was due for an answer on Tuesday, 16 October 2018. It was answered by Earl Howe (Conservative) on Monday, 15 October 2018 on behalf of the Ministry of Defence.
Defence: Procurement
- Question
-
To ask Her Majesty's Government what are the implications for the defence budget of rising oil prices.
- Answer
-
The Ministry of Defence (MOD) undertakes substantial purchases of fuel commodities, the price of which will be influenced by oil prices. The Department secures a degree of protection against changes in price by purchasing hedging contracts that are equivalent to buying a proportion of forecast demand at agreed prices in advance.
The MOD hedges up to three years in advance and usually trades quarterly to further spread price risk. This approach has been used for fuel hedging since 2010.
Secondary information
- Type
- Written question
- Reference
- HL10425
- Session
- 2017-19
- Subjects
- Defence Oil Procurement Prices
- Contains statistics
- Yes
- Link
- View this Written question on www.parliament.uk
Librarians' tools
- Timestamp
- 2018-10-18 12:40:17 +0100
- URI
- http://data.parliament.uk/writtenparliamentaryquestion/lords/2017-19/HL10425
- In Indexing
- http://indexing.parliament.uk/Content/Edit/1?uri=http://data.parliament.uk/writtenparliamentaryquestion/lords/2017-19/HL10425
- In Solr
- https://search.parliament.uk/claw/solr/?id=http://data.parliament.uk/writtenparliamentaryquestion/lords/2017-19/HL10425