Ceredigion Preseli MP Ben Lake has urged the government to introduce measures to support off-grid households and businesses with the rising costs of fuel, as the conflict in Iran wages on.

During an economic statement by the Chancellor, and in a subsequent meeting with government Ministers, Ben Lake MP urged the government to issue payments to off-grid households as were introduced following the Russian invasion of Ukraine. Mr Lake also emphasised the need to bring forward more stringent regulation to the heating oil and LPG market to mirror that in place for mains gas.

The Chancellor announced on Monday that she would be supportive of a co-ordinated release of collective International Energy Agency Oil Reserves along with other G7 finance ministers and would ask the Competition and Markets Authority to be vigilant on any potential price gouging in the time of crisis. While this is a step in the right direction, greater certainty is needed around specific support for rural off-grid households.

Ceredigion Preseli has one of the highest percentages of households without a connection to the mains gas grid of any constituency in Great Britain, with 72% of homes across the area dependent on oil and LPG to heat their homes.

Some rural households report facing heating oil price increases of up to 117% and there is no regulatory protection for off-grid properties who are exposed to the volatility of the wholesale markets.

Mr Lake said: "Whilst I welcome the government's commitment to reconsider the regulation of the heating oil and LPG sectors, such efforts will only provide relief for rural communities in the long term. Such is the severity of situation currently facing off-grid households and businesses the government must bring forward support measures as a matter of urgency.

"Dozens of constituents have been in contact in recent days to report significant price increases, which are unaffordable for many. The financial consequences of the Iran crisis are acutely felt across Ceredigion Preseli, and although we all hope for a swift end to hostilities, the prospect of longer-term disruption to supply chains and a prolonged period of heightened prices risk dealing a severe blow to rural communities.

"I made the case for immediate relief for off-grid households and businesses directly to the Energy Minister and Financial Secretary to the Treasury at Wednesday's meeting. Along with other Members of Parliament representing rural constituencies from across the UK, I urged them to consider short-term measures ranging from direct payment support for off-grid properties to temporarily exempting heating oil and LPG from VAT.

"Such measures would not detract from longer-term efforts to introduce enhanced regulatory protections, nor indeed action on any price gouging, but would at least offer some immediate help to households and businesses struggling with higher prices this week." Speaking in the House of Commons, Chancellor Rachel Reeves said: “I recognise that there are significant challenges in some areas of Wales, as indeed there are in Northern Ireland.”