Independent Senedd candidate for Sir Gaerfyrddin, Carl Peters‑Bond, has renewed his call for urgent action on fuel costs – urging the UK Government to scrap VAT on petrol and diesel as prices continue to rise sharply due to the escalating conflict in the Middle East.
Carl says the current tax structure means the government is “profiteering from a crisis” and worsening the cost‑of‑living pressures facing households, businesses and rural communities.
Fuel duty is currently set at 52.95p per litre, unchanged since March 2022. On top of this, 20% VAT is applied to both the product price and the duty, meaning the Treasury’s income increases automatically whenever wholesale prices rise.
Carl said: “Every time global events push up the wholesale price of fuel, the government takes an even bigger cut. VAT is a percentage tax – so when prices rise, the Treasury’s income rises with it. 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.”
Building on previous warnings
This follows Carl’s earlier warning, issued on 19 March, after BBC data revealed that Carmarthenshire communities were among the most exposed in Wales to rising oil and fuel prices.
“I said then that Carmarthenshire was on the frontline of the energy crisis — and nothing has changed. If anything, the situation has worsened. Rural communities like ours are being hit first and hit hardest.”
Rural Carmarthenshire disproportionately affected
Carl emphasised that rural areas such as Carmarthenshire face a far greater impact from rising fuel costs:
• Public transport is infrequent, unreliable, or unavailable
• Essential journeys — including school runs, health appointments and grocery shopping — often involve long distances
• Many residents have no practical alternative to driving
• Local businesses depend heavily on road transport for goods and services
Carl continued: “For many people here, driving isn’t a choice — it’s a necessity. When fuel prices rise, rural families feel it immediately. Scrapping VAT on fuel would provide instant relief and help level the playing field.”
Further fuel duty increases already scheduled
Carl also highlighted that the UK Government has already scheduled further increases in fuel duty, which will add even more pressure over the next year.
Under the 2025 Budget, the temporary 5p-per-litre fuel duty cut will be phased out in stages:
• 1 September 2026: +1p per litre
• 1 December 2026: +2p per litre
• 1 March 2027: +2p per litre
This will return fuel duty to its pre‑2022 level of 57.95p per litre.
Carl said: “Not only are people paying more because of global events – the government has already baked in three separate fuel duty rises. That means even higher prices on top of the VAT windfall they’re already collecting. It’s completely the wrong approach during a cost‑of‑living crisis.”
Uneven investment across the UK
Carl also criticised the imbalance in transport investment: “Billions have been poured into HS2 in England, and hundreds of millions into the Cardiff Metro. Meanwhile, rural Wales is left with rising costs, patchy public transport and no meaningful support. Removing VAT on fuel would be a simple, fair step to help communities like ours.”
Carl’s wider commitments
As part of his transport and cost‑of‑living commitments, Carl has pledged to:
• Campaign for fairer investment in Carmarthenshire’s transport network
• Push for urgent action on stalled infrastructure projects
• Advocate for policies that reduce the cost burden on rural communities
Carl concluded: “People are being squeezed from every direction. The government should not be making extra money from a global crisis. Scrap the VAT for fairer fuel — it’s the quickest and simplest way to put money back into people’s pockets.”
