Rachel Reeves has come under fire over the decision to axe the 5p fuel duty cut, with warnings that rural drivers already face punishing travel costs with no viable alternatives.
During a Westminster Hall debate, MPs warned people living outside towns and cities often have "no choice" but to drive, yet face higher fuel prices and fewer alternatives.
Research discussed in the debate showed rural households spend around £800 more a year on fuel than those in urban areas.
Liberal Democrat MP Ian Roome, who secured the debate, said the situation is especially difficult in his North Devon constituency, adding that many residents simply cannot avoid driving.
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"People have no choice but to drive," Mr Roome said, noting that local wages are already under pressure. Median pay in the area, he said, is £84 a week lower than the national average.
Ben Maguire, the Liberal Democrat MP for North Cornwall, made a similar point. He said about 75 per cent of journeys in his constituency are made by car because public transport is so limited.
He also warned that fuel prices in Cornwall are often 10 to 15 per cent higher than in other parts of the country.
While the 5p fuel duty scheme gives a 5p per litre discount at filling stations, the Chancellor announced in the Autumn Budget last year that the relief would be phased out, starting in September.
MPs warned that the fuel duty hike in September will impact rural drivers the most
| PAMinisters argued the relief has lost more than 30 per cent of its value since it was introduced in 2012, because it has never increased in line with inflation.
Several MPs have now called for the rural fuel duty relief scheme to be expanded, with coverage doubled to include another 21 areas, including parts of Devon, Cornwall, Cumbria and Wales.
Shadow Minister James Wild warned that ending the 5p fuel duty cut from September would hit families and businesses alike, telling MPs that removing the cut would see "the average family pay £100 a year more".
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The frozen fuel duty rates will remain frozen until August 2026
| GETTYMr Wild also revealed the Road Haulage Association estimates the change will add more than £2,000 a year to the cost of running a heavy goods vehicle.
"From April next year, the Government will scrap the 16-year fuel duty freeze that we introduced, and inflation-linked rises will follow," he said.
He accused Labour of "making things harder and more expensive for rural communities". He noted that the RAC has warned that keeping a vehicle on the road is now "a significant financial challenge".
The Conservative MP for North West Norfolk also raised concerns about Labour's plans for electric vehicles, saying a proposed pay-per-mile charge could cost drivers an extra £255 a year.
Treasury Minister Dan Tomlinson explained how drivers will soon be able to compare fuel prices using the new open-data scheme
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Responding for the Government, Treasury Minister Dan Tomlinson defended the Chancellor's decisions. He told MPs that fuel prices are currently at their lowest since 2021, before Russia's invasion of Ukraine led to the temporary 5p cut.
"Fuel duty rates are therefore now, in real terms, about 40 per cent lower than they were in 2011," Mr Tomlinson said.
He confirmed that the Budget extended the 5p cut until August, after which fuel duty will rise gradually, returning to March 2022 levels by March 2027.
The Minister explained the rural fuel duty relief scheme currently supports around 165 fuel retailers and costs the Treasury about £5million a year.