Liberal Democrats to expand Rural Fuel Duty Relief to cut petrol prices for drivers in countryside

16 Jun 2024

Embargoed until 22.30 Sunday 16 June

Lib Dem leader Ed Davey sets out new plans to help rural motorists who’ve been “clobbered by the cost of living”
Significant expansion of Rural Fuel Duty Relief to 20 new areas would help drivers in rural communities bearing the brunt of high petrol prices
Areas receiving expanded relief would include Devon, Cornwall, Cumbria, Shropshire, Yorkshire in England, along with rural parts of Scotland and Wales

The Liberal Democrats will today (Monday 17 June) announce plans to support motorists in rural areas by doubling the scope of Rural Fuel Duty Relief scheme to include another 20 areas, saving drivers in these areas 5p a litre at the pump.

Rural Fuel Duty Relief helps to bring costs down for drivers in rural areas, who previous research has found spend an average of £800 more on fuel costs a year than those in urban ones. The scheme is currently applied to just 21 areas across the country, including the Isles of Scilly, three postcode districts in England, and the Highlands and Orkney and Shetland in Scotland. Fuel retailers in these areas can apply for relief of 5p per litre of petrol or diesel, which is then passed on to consumers through reductions in price at the pump.

Liberal Democrats will double the number of areas covered by the scheme, meaning an additional 21 areas across the UK will benefit from the relief, funded by an additional £7 million a year by the end of the Parliament.

The party has proposed a consultation to determine the areas which could receive the new Relief, and within England have identified Devon, Cornwall and Cumbria in the South West, East Anglia, Yorkshire, Shropshire and Cumbria as areas that could potentially benefit. Parts of rural Wales and more of rural Scotland could also benefit from the expanded scheme.

The Liberal Democrats have also committed to introducing a Pumpwatch scheme, to allow drivers to directly compare fuel prices and protect them from rip-off prices. A similar scheme already exists in Northern Ireland, which has the lowest fuel prices in the UK. The government has previously pledged to introduce a Pumpwatch scheme, but failed to deliver on that promise before the end of the Parliament.

Liberal Democrat Leader Ed Davey commented:

“People in rural areas have been clobbered by the cost of living crisis and the Conservatives have just not done enough to support them. We need a real rescue plan to support rural communities struggling with outrageous pump prices.

“The Conservatives have let the cost of living crisis hit rural communities hard. They have ignored Liberal Democrat calls to expand rural fuel duty relief, left roads to crumble and cut public transport options, including rural bus routes.

“Liberal Democrats are standing up for rural communities after years of Conservative chaos and neglect. Every vote for the LiberalDemocrats is a vote for a strong local champion who will fight for the fair deal you deserve.”

ENDS

Notes to Editors

The Liberal Democrats’ manifesto contained commitments to:

Protect motorists from rip-offs, including unfair insurance and petrol prices.
Help motorists in rural and areas who face higher fuel costs by expanding Rural Fuel Duty Relief.

More details on the Rural Fuel Duty Relief scheme, including the existing list of 21 areas covered by the scheme, can be found here.

Rural households that depend on their cars spend nearly £800 a year more on fuel than people who live in urban areas (Countryside Alliance, 2022).

In 2022, the Competition and Markets Authority (CMA) found that median fuel prices were on average 1.2p/litre higher in rural areas than in urban areas. The 2022 CMA report, ‘Supply of road fuel in the United Kingdom market study’ can be found here.