Speaking at the launch of his campaign to highlight the issue, Mr Williams called on the Government to to cut rural fuel duty in recognition of the fact that cars are an essential part of life in rural communities, due to their lack of public transport, and the greater distance needed to travel to obtain goods and services.

Mr Williams said: "In rural areas, cars are a necessity not a luxury because of the way people lead their lives.

"People in rural areas are being stung because they simply have to buy more petrol than people in cities.

"I am calling on the Government to apply for a European derogation similar to that which France, Portugal and Greece have already secured, so that they can cut fuel tax in rural areas.

"We know that rises in prices at the pump are driven by the global oil price, but why isn't the Government taking all the action available to ease the pressure on rural communities.

"I am launching this campaign to send a message to the Prime Minister that he has to take action to help people in rural areas who are struggling to make ends meet. Ultimately this is a test of whether the Government cares about rural communities or not."

Gareth Vaughan, president of the Farmers Union in Wales, has backed the calls: "I am glad Roger Williams has been vocal in his support for rural residents and businesses.

"Judging by the responses we have had from the Chancellor, I don't think we will see the cuts, but all the same it is good to be proactive and we fully support Roger in his campaign."

Calls for a fuel regulator have been reiterated by a Mid Wales AM who is also concerned at the spiralling fuel prices.

Nerys Evans AM, who has previously campaigned for the introduction of a fuel regulator, says that with fuel prices expected to hit £1.50p per litre in the coming months action needs to be taken.

She said: "We have seen fuel costs rising at a rapid rate which is having a major impact on the ability of people in Powys to run a family car.

"The pressure on businesses is even greater as we have seen with recent protests by haulage companies. Having a fuel regulator with the power to set petrol prices is essential.

"It would put an end to the position where people are at the mercy of the oil market.

A fuel regulator could have a major impact for haulage companies and farmers by offering a mechanism for a tax rebate for high end users.

"It will also have a positive affect on the average consumer who is finding it increasingly difficult to keep pace with rising fuel costs."

The AM also claims Powys should receive a slice of the bumper tax windfall from soaring oil prices.

She says with the UK Government benefiting from an extra £1.3 billion from rocketing prices, it is vital some of the money should be sent to help councils, emergency services and other public sector services in Wales and the county.

She said: "Public services are loosing out because they are required to operate with higher costs."