Harlech Foodservice’s fuel costs have increased by 50 per cent since March and are projected to reach £1.5 million a year.

The news comes as Gwynedd MP Liz Saville Roberts calls for rural fuel duty relief to be extended to Wales as households and businesses face mounting costs

She joined fellow Plaid Cymru MPs Ben Lake, Ann Davies and Llinos Medi in writing to the Chancellor calling for urgent support for Wales’ rural communities after the average price of diesel in the UK hit a record £2 a litre.

They say households and businesses are facing mounting pressure from escalating fuel costs, driven in part by instability in the Middle East, and rural communities are being disproportionately affected because many people have no practical alternative to travelling by car for work, education, healthcare and other essential services.

Despite this, Wales remains excluded from the Rural Fuel Duty Relief Scheme, which currently applies to remote areas in England and Scotland. 

They say extending fuel duty support would provide much-needed relief to families, farmers and businesses facing growing financial pressure, while helping to protect rural economies from the impact of sustained high fuel prices.

They want UK Government to retain the temporary 5p cut in Fuel Duty beyond December, extend the Rural Fuel Duty Relief Scheme to eligible communities in Wales, and consider increasing fuel duty relief to reflect continuing high fuel prices.

Andrew Foskett, Harlech Foodservice joint chairman, said: "Our fuel costs have increased by 50 per cent since March and are projected to annualise at £1.5 million.

“Diesel is the lifeblood of our industry and increases like this can only be absorbed for so long before they have to be passed on to customers.

"Due to increased transportation costs for manufacturers, poor harvests, fertiliser and labour costs, food inflation is likely to increase over the next 12-18 months.”