The government ignored my pleas on fuel regulation – and rural areas like Kilmarnock will suffer

Kilmarnock and Loudoun consists of a large town with several outlying villages and rural properties. Unemployment is above the UK average and we have areas of social deprivation. Many were already struggling before the cost of living crisis. Several rural properties are off the gas grid and some have been in touch about the unaffordability of filling their oil/LPG tanks. March 2022 saw prices of liquid fuels three times higher than March 2021. Worse, these properties are not protected by the electricity cap and pay higher tariffs. Unlike others who are struggling, they cannot simply top-up their tanks with small amounts of fuel. Cashflow becomes a real issue when a tank fill is required, and it could cost £1500.

This off-grid market is unregulated, and my constituents feel they are being ripped off. I wrote to the BEIS Secretary about regulating these fuels, and the answer I received advised regulation wasn’t necessary – a study in 2011 showed the market was working well and that the free market keeps prices competitive! This takes no cognisance of the current crisis and I challenge him to tell my constituents they should simply shop around to get a better deal for their LPG/oil.

Those in the rural area are further impacted by the petrol pump prices – even after the duty cut, petrol is still 33 per cent higher than 12-months ago. For those “protected” by the cap the reality is energy is 75 per cent higher than April 2021 and, therefore, the Chancellor’s VAT returns on energy are 75 per cent higher than a year ago. His extra VAT on petrol increases more than pays for the duty rebate, with oil and gas revenues up by billions.

My constituents are angry about the £200 rebate being applied as a loan. However, the most worrying of all, is I know those who will be struggling the most are less likely to flag up if they need help.

“Cashflow becomes a real issue when a tank fill is required, and it could cost £1500”