Committee publication · Correspondence · 22 April 2026
Correspondence from the Minister of State for Energy relating to follow-up from Energy resilience oral evidence session, dated 17 April 2026
Summary
Minister Michael Shanks responds to the Energy Security and Net Zero Committee's follow-up questions from oral evidence on energy resilience (25 March 2026). The Government reaffirms its position on fuel supply resilience, forecourt pricing, the Energy Profits Levy, and Carbon Border Adjustment Mechanism scope, emphasizing low Middle East exposure and commitment to clean energy as the answer to energy security.
Key findings
- UK fuel supply remains normal with minimal Middle East exposure; 2025 refinery production exceeded petrol demand, creating exportable surplus
- Government rejects 'price gouging' at forecourts and expects responsible pricing; CMA monitoring road fuels market closely
- Energy Profits Levy (EPL) has raised £12bn since 2022; OBR forecasts ESIM will trigger and EPL will cease by 30 September 2027, triggering permanent Oil and Gas Price Mechanism
- Government will publish draft legislation for Oil and Gas Price Mechanism in next available Finance Bill, responding to industry calls for earlier replacement of EPL
- Carbon Border Adjustment Mechanism scope assessment ongoing; no implementation date committed for refined products inclusion pending further analysis on trade and cost impacts
Tone
ProceduralTopics
energy-securityfuel-supplytaxationclean-energycarbon-policy
Key actors
Michael Shanks MP, Bill Esterson MP, Prime Minister, Chancellor, Competition and Markets Authority, Petrol Retailers Association, Fuels Industry UK, Office for Budget Responsibility
Notable line
“… the UK remains too exposed to international fossil fuel markets, and the answer for our energy security and lower bills must be to go further and faster on home- grown clean power that we control.”
Key Quotes
“… the UK remains too exposed to international fossil fuel markets, and the answer for our energy security and lower bills must be to go further and faster on home- grown clean power that we control.”
“The Government is clear that there is no justification for price gouging at the pumps, particularly at times of heightened international volatility”
“A very low amount of diesel and crude oil are imported to the UK from the Middle East, which is why we have not experienced supply issues.”
“… future fiscal regime. The EPL has already raised around £12bn since its introduction in”
“The Chancellor recognises industry's calls for the EPL to be replaced by the perman ent OGPM sooner than 2030 and wants to work with industry to create a stable …”
Source · parliament.uk record ↗