Fuel firms need reimbursing

The government should ensure no service stations are out of pocket when its fuel-relief package comes to an end in two weeks’ time, says the Motor Trade Association (MTA).

The subsidy on fuel-excise duty ends on June 30 and has been welcome support for many households and businesses during the cost-of-living crisis.

Now, the MTA says government must check to ensure all fuel businesses are fully reimbursed for costs incurred at the start of the scheme.

Apart from announcing the end of the subsidy, it has yet to release any details on how the reinstatement will be managed, which the association says would be beneficial to the industry and motorists. In the meantime, motorists should also plan their fuel needs ahead of time to avoid logjams at the pump.

The MTA spoke with officials at the Ministry of Business, Innovation and Employment immediately after the announcement of the subsidy. It received an assurance from Energy Minister Megan Woods, pictured, that it wasn’t intended for any business to lose money as a result of the scheme.

As around one-third of the MTA’s fuel-retail members are independent operators, often family businesses, this is particularly relevant.

“There was no consultation or feedback from industry on the unintended consequences of removing the fuel-excise duty,” says a spokesman for the MTA.

“There is an opportunity to learn from this for future programmes. We are happy to facilitate or participate in any conversations between industry and government.”