Llyr Huws Gruffydd: ‘Fuel duty hike must be postponed’

Plaid Cymru’s Clwyd West candidate Llyr Huws Gruffydd has today called for a freeze on fuel duty as Wednesday’s Budget looms.

Fuel duty is set to rise by 2.55 pence per litre from April 2010 (1% above the rate of inflation) which will cost the average family an extra £200 a year and cause further problems to small businesses already struggling with higher fuel duties. Plaid has insisted that this duty hike should be postponed.

Campaign organisations such as the Road Haulage Association and the Farmers Union of Wales have come out in support of Plaid’s calls for a fair fuel duty regulator. Under such a plan, an unexpected spike in petrol prices would lead to a freeze on fuel duty.

MPs from Plaid and the SNP have tabled an EDM urging a freeze on fuel duty and repeating calls for the establishment of a fuel duty regulator.

Llyr Huws Gruffydd said:

“It is the people of Clwyd West that will feel the pinch of this fuel hike, which will hit families, the haulage industry and agriculture.

“This is an issue that affects all parts of Clwyd West. Hard-working families see prices rise week by week, with many more people struggling to run a car. But these sky high fuel taxes impact on businesses and on prices in the shops, as costs rise to deliver food and other products to retailers.

“A freeze on fuel duty is essential.”

Geoff Dunning, chief executive of the RHA, says:

“The Road Haulage Association fully supports Plaid Cymru’s calls for a fuel duty regulator – a move that would ensure price stability as well as lower fuel taxes."

Plaid’s Westminster leader Elfyn Llwyd MP added:

“This is just punishing ordinary people for a banking system failure that the London government helped to create.

“We will continue to fight this fuel hike and urge the introduction of a fuel duty regulator at the Budget to ensure price stability as well as lower fuel taxes.”

Plaid Cymru has long campaigned for a new mechanism to cap petrol prices. Together with the SNP, a motion to amend the Finance Bill in 2008 to create a fuel duty regulator was voted down by Labour.

The creation of such a regulator is backed by leading industry voices such as the Road Haulage Association. Under such a plan, an unexpected spike in petrol prices would lead to a freeze on fuel duty.