Welsh Lib Dems urge Reeves to scrap fuel duty hike as global instability drives rising petrol prices

The Welsh Liberal Democrats have called on Labour to cancel their planned fuel duty increase, warning that continued instability in the Middle East is already driving up global oil prices and risks placing further pressure on households and businesses across Wales.

The intervention comes as forecourts begin to reflect rising wholesale costs, with industry experts warning that sustained geopolitical tensions could keep prices elevated in the weeks ahead. Edmund King, President of the AA, has previously warned that such instability would “inevitably lead to price hikes,” with sharp increases often feeding through to drivers within days.

Labour’s planned changes would see fuel duty rise for the first time in 15 years, beginning with a 1p increase in September, followed by further rises through to 2027. The Welsh Liberal Democrats have warned that pressing ahead with the increase at a time of heightened global uncertainty would compound cost-of-living pressures, particularly in areas where people have little choice but to drive.

In rural parts of Wales, where public transport options are often limited or non-existent, higher fuel costs would have a disproportionate impact. Many residents rely on their cars not just for commuting, but for accessing healthcare, education and essential services. Small businesses, farmers and tradespeople, already facing rising input costs, would also be hit by increased transport expenses, which risk being passed on to consumers.

The party has also highlighted that communities in counties such as Powys and Ceredigion are especially exposed, with long travel distances and limited alternatives making them more vulnerable to fluctuations in fuel prices than urban areas.

In addition, the Welsh Liberal Democrats are calling on the UK Government to extend the Rural Fuel Duty Relief Scheme to eligible parts of rural Wales, noting that the scheme currently applies in remote areas of Scotland and England but excludes Welsh communities facing similar challenges.

The Welsh Liberal Democrats are urging the UK Government to recognise these regional disparities and avoid implementing policies that risk widening inequalities between rural and urban communities. They argue that scrapping the planned duty increase and expanding targeted relief would provide immediate support and help stabilise costs for households and businesses alike.

Commenting Welsh Liberal Democrat MP for Brecon, Radnor and Cwm Tawe, David Chadwick, said:

“People in rural Wales are already being hammered by rising fuel costs, and they simply don’t have the alternatives that people in cities might take for granted. When petrol prices rise, there is no bus to fall back on, no train to switch to, just longer journeys and higher bills.

“At a time when global instability is pushing prices up, the last thing families and small businesses need is the Government making matters worse. Pressing ahead with a fuel duty hike would hit rural communities hardest and deepen the cost-of-living crisis in places like Powys.

“It also cannot be right that rural communities in Wales are excluded from the Rural Fuel Duty Relief Scheme, while similar areas in Scotland and England benefit. That imbalance needs to be addressed.

“The Chancellor must recognise the reality facing rural Wales and scrap this planned increase, while extending targeted relief to the communities that need it most. These are simple steps that would ease pressure on households, support local businesses and ensure that those who rely on their cars are not unfairly penalised.”

ENDS