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Oil and Gas High Price Mechanism Consultation

05 March 2025

Proposing MP
James Murray Lab Co-op
Ealing North
Type
Written Ministerial Statement
Department
Treasury
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At a Glance

Issue Summary

The statement addresses a consultation on establishing a new permanent mechanism to respond to future oil and gas price shocks after the Energy Profits Levy ends in 2030.

Action Requested

HM Treasury and HM Revenue and Customs have published a consultation seeking stakeholder feedback on design options for a new high-price mechanism. The consultation will remain open until May 28, 2024, and findings will inform the final mechanism's design.

Key Facts

  • The Energy Profits Levy (EPL) was introduced in 2022.
  • The EPL will end in 2030 or earlier if its price floor is triggered.
  • The consultation will close on 28 May, 2024.
  • A separate consultation titled “Building the North Sea’s Energy Future” has been launched by the Department for Energy Security and Net Zero.
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