Plaid urge Government to create a fuel duty regulator

Plaid Cymru and the Scottish National Party will challenge the Government today over the increasing price of fuel. The parties are using their annual Opposition Day debate to call on […]

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By Tom Gibson

Plaid Cymru and the Scottish National Party will challenge the Government today over the increasing price of fuel.

The parties are using their annual Opposition Day debate to call on the coalition to fulfil its pre-election pledge to establish a fuel duty regulator.

Jonathan Edwards, MP for Plaid Cymru, said: “The Tory-led Government’s VAT increase and fuel duty hike have pushed the price of a litre up by at least 3.5p in the last month alone – and it is set to get worse with another 1p rise in fuel duty this April. For the short-term we need to have a fuel duty stabiliser and a special price for fuel in rural areas, but we also need to diversify and invest in renewable energy alternatives to reduce our reliance upon oil and other fossil fuels.”

With oil prices reaching $100 a barrel, the UK has become the most expensive country in Europe. The recent rise in prices has lead the parties to call for support from more Welsh MPs as they claim it is those businesses and families in rural areas that will suffer the most.

A spokesperson for the Freight Transport Association said: Fuel accounts for a third of the costs of running a truck, when its price rises steeply it has an immediate impact on a company’s cash flow. The fuel duty increase planned for April will likely see the price of a litre of diesel rise by 3.5ppl, landing UK business with an annual bill of over £430m. This cost is unsustainable and because the logistics sector impacts on every sector of our society there is no doubt that it will severely impede the UK’s chances of economic recovery.”