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<p>Her Majesty's Government is acutely aware of the difficulties people have experienced
with the price of liquid petroleum gas and heating oil. The price of LPG and oil is
influenced by a range of factors, including crude oil prices (the major factor), refinery
capacity, stock levels, distribution costs and retail margins.</p><p> </p><p>We believe
that the consumer is best served by open competition between companies. The Office
of Fair Trading studied the heating oil market in 2011 and found few competition concerns.
Most areas of the UK are supplied by a variety of heating oil suppliers and there
are low barriers to entry for new businesses who may want to compete. The OFT study
also commented on the generally positive initial impact of the Competition Commission
Orders from 2009 to make it easier for domestic bulk LPG consumers to switch supplier,
and there is a statutory duty to keep under review the effectiveness of and compliance
with these Orders.</p><p> </p><p>My Rt. Hon. Friend the Minister of State for Energy
will chair a third Ministerial Roundtable meeting on heating oil and LPG supply on
21 May. The Roundtable brings together a wide range of interests including Government,
regulators, advisory and charitable bodies, the fuel supply industry and others to
work together to improve the security and affordability of off-grid fuel supply.</p><p>
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