Plaid Cymru MPs have today (Thursday 8 October) written to the Chancellor calling for urgent support for rural communities across Wales after the average price of diesel in the UK recently hit a record £2 a litre.

In a joint letter, Liz Saville Roberts MP, Ben Lake MP, Ann Davies MP and Llinos Medi MP warned that households and businesses are facing mounting pressure from escalating fuel costs, driven in part by instability in the Middle East.

The MPs argue that rural communities are being disproportionately affected because many people have no practical alternative to travelling by car for work, education, healthcare and other essential services.

Businesses have also warned of the impact. Gwynedd-based Harlech Foodservice, one of Wales’ leading food distributors, says its fuel costs have increased by 50% since March and are projected to reach £1.5 million a year.

Despite this, Wales remains entirely excluded from the Rural Fuel Duty Relief Scheme, which currently applies to remote areas in England and Scotland.

The MPs say extending fuel duty support would provide much-needed relief to families, farmers and businesses facing growing financial pressure, while helping to protect rural economies from the impact of sustained high fuel prices.

Plaid Cymru is calling on the UK Government to:

  • Retain the temporary 5p cut in Fuel Duty beyond December.
  • Extend the Rural Fuel Duty Relief Scheme to eligible communities in Wales.
  • Consider increasing fuel duty relief to reflect continuing high fuel prices.

The Plaid Cymru MPs said:

“In recent weeks fuel prices have skyrocketed, with the RAC estimating that the cost of filling an average family car with diesel is now almost £110. This is £31 higher than at the beginning of the US-Iran war. Given the much higher dependency on car travel in rural areas, households and businesses in these communities are being disproportionately impacted. Rural businesses have also explained how the increase in fuel prices risks crippling their operations.

 “As it stands, the Rural Fuel Duty Relief Scheme applies to just 21 remote rural areas across parts of England and Scotland but excludes every part of Wales due to the way the policy was originally designed. At the same time, the temporary 5p cut in Fuel Duty is due to expire at the end of this year.

 “We are therefore writing to urge the UK Government to extend the Rural Fuel Duty Relief Scheme to Wales. Rural households across Wales often have no alternative mode of transport to travel to work, access education or attend essential healthcare appointments, and are therefore paying a premium simply because of where they live. We are also urging the government to extend the cut in Fuel Duty beyond December, and to consider increasing the level of relief above 5p, given that petrol and diesel prices are likely to remain high for many months to come and are still around 40% higher than they were in February.”

Joint Chairman at Harlech Foodservice, Andrew Foskett, said:

“Our fuel costs have increased by 50% since March and are projected to annualise at £1.5 million. Diesel is the lifeblood of our industry and increases like this can only be absorbed for so long before they have to be passed on to customers.

 “Due to increased transportation costs for manufacturers, along with poor harvests, fertiliser and labour costs, food inflation is likely to increase over the next 12 to 18 months.”