20 June 2023

Ensure a Smooth End to FED Subsidy

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

The fuel excise duty (FED) subsidy will end on 30 June. MTA says the subsidy was welcome support for many households and businesses during the cost of living crisis.

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

Apart from announcing the end of the subsidy, Government has not released any details on how the reinstatement will be managed, which would have been beneficial to the industry and motorists. In the meantime, motorists also should plan their fuel needs ahead of time to avoid any logjams at the pump.

MTA spoke with the Ministry of Business, Innovation and Employment (MBIE) immediately after the announcement of the subsidy. MTA received an assurance from Energy Minister Megan Woods that it was not intended that any business would lose money as a result of the scheme.

As around a third of MTA 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 FED. There is an opportunity to learn from this for future programmes.

MTA is happy to facilitate or participate in any conversations between industry and Government.

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