‘Scrap the VAT’: Senedd candidate says rural Carmarthenshire is being ‘hit first and hit hardest’ by fuel price surge
Carl Peters‑Bond, who is standing for the new Sir Gaerfyrddin constituency, says the current tax system means the Treasury “profits every time global events push up the wholesale price of fuel”, leaving rural communities exposed and increasingly desperate.
‘Profiteering from a crisis’
Fuel duty has been frozen at 52.95p per litre since 2022 — but VAT is charged as a percentage on top of both the product price and the duty. Peters‑Bond says that means the government’s income rises automatically whenever prices spike.
“Every time global events push up the wholesale price of fuel, the government takes an even bigger cut,” he said. “At a time when families are struggling and businesses are fighting to stay afloat, that is simply unacceptable. It’s time to scrap the VAT for fairer fuel.”
Rural Carmarthenshire ‘hit hardest’
Peters‑Bond says communities across Carmarthenshire are facing a far sharper impact than urban areas, with many residents having no choice but to drive long distances for work, school, health appointments and basic shopping.
Public transport, he argues, is too infrequent or unreliable to offer a realistic alternative.
“For many people here, driving isn’t a choice — it’s a necessity,” he said. “When fuel prices rise, rural families feel it immediately.”
Further duty rises already on the way
Fuel prices are already climbing due to the escalating conflict in the Middle East — but Peters‑Bond warns more increases are baked in.
Under the 2025 Budget, the temporary 5p fuel duty cut will be phased out in three stages:
- 1 September 2026: +1p per litre
- 1 December 2026: +2p per litre
- 1 March 2027: +2p per litre
This will return duty to its pre‑2022 level of 57.95p per litre.
“Not only are people paying more because of global events – the government has already scheduled three separate fuel duty rises,” he said. “It’s completely the wrong approach during a cost‑of‑living crisis.”
‘Rural Wales left behind’
Peters‑Bond also criticised what he sees as uneven investment across the UK, pointing to major spending on HS2 and the Cardiff Metro while rural areas face rising costs and limited transport options.
“Removing VAT on fuel would be a simple, fair step to help communities like ours,” he said.
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