Island petrol discount could be extended to mainland

Thursday 21 February 2013

The Treasury is considering lobbying the European Commission for a fuel duty discount serving rural mainland areas, the UK Government has said.

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Danny Alexander, the Chief Secretary to the Treasury, revealed the plan while answering questions on possible fuel duty reductions in remote parts of the UK mainland during a visit to meet business leaders in Cornwall.

He said any relief for hard-up rural motorists would take a long time to get off the ground, but said he was keen to hear from those wishing to make a case for the discount.It comes nearly a year after a similar discount scheme – 5p off a litre of fuel – was offered to some of Britain's island communities, including the Hebrides, Northern Isles, islands in the Clyde and those on the Scillies.He said: "We introduced, for the first time ever in this country, a fuel duty discount last year."I am looking at the moment at whether a case can be made to Brussels to allow a delegation for some of the most remote mainland areas in the UK as well. "The process is a complicated one, and there's a very high hurdle in the sense that we have to be able to persuade the European Commission and get all of the other 26 member states to vote for it."A survey last year revealed the price of diesel in rural filling stations was, on average, 4p more than in urban areas. Those in rural communities have also said a low density of supermarket-tied filling stations has meant increased costs at the pump, compared with urban areas where competition has helped drive prices down.Mr Alexander said: "I can't make any promises at this point, but I am working on whether a justification can be made that is on the same basis as the justification for the islands."It's a long process. I would think that it will be around a year before we will have any real progress on that. I haven't made any decisions on which areas can actually make a case."I understand there are areas in Cornwall that want to make the case and I am sure through their elected representatives that can be presented."The case for the islands was made on the significant extra costs of delivering fuel to those areas. I'm not sure whether we will be able to do that (for the mainland) but I will certainly have a jolly good look at it."The AA's president, Edmund King, welcomed the plans, but urged greater transparency on fuel prices. He said: "Without fuel price transparency, rural drivers don't know if the full rebate is being passed on, and become suspicious. "Hence, the Government needs to act on fuel price transparency together with rural discounts."

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Island petrol discount could be extended to mainland

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