Motorists in 10 more rural areas could see a reduction in fuel duty – if Brussels grants permission.

Government ministers seeking a reduction of up to a 5p per litre in fuel duty for remote areas have now submitted a formal application to European Commission.

Treasury chief secretary Danny Alexander said a successful application would see the government's rural fuel rebate scheme extended to 10 new areas.

The rebate scheme already gives motorists on remote Scottish isles and the Scilly Isles a 5p per litre discount on their fuel.

Three towns in England and seven towns in Scotland were judged to have met strict criteria which Brussels has indicated will be critical in their assessment.

The areas that could see fuel duty cut are:

* Acharacle (Scotland – Lochaber), postcode: PH36
* Achnasheen (Scotland – Ross & Cromarty), postcode: IV22
* Appin (Scotland – Argyll and Bute) postcode: PA38
* Carrbridge (Scotland - Badenoch and Strathspey), postcode: PH23
* Dalwhinnie (Scotland - Badenoch and Strathspey), postcode: PH19
* Gairloch (Scotland - Ross & Cromarty), postcode: IV21
* Hawes (England – North Yorkshire), postcode: DL8 3
* Kirkby-in-Furness (England – Cumbria), postcode: LA17
* Lynton (England – Devon), postcode: EX35
* Strathpeffer (Scotland - Ross & Cromarty), postcode: IV14

A final decision on the areas in the scheme and the price discount is expected from the European Commission some time next year.

If the extension is approved this will raise the number of people benefitting from the rural fuel scheme to nearly 120,000.

Mr Alexander said: "As a Highlander, I know all too well that fuel prices tend to be highest in areas where a car is needed the most.

"We've already delivered a tax cut for remote islands and now want to extend that to mainland rural areas that suffer from similarly high prices to the islands."

Mr Alexander said the government had put together the strongest possible evidence base to try and maximise the number of places where fuel duty would be reduced.

He added: "As I've said before, it won't be easy to get this agreed with the commission, but I will do everything I can to make this happen."

These new areas have been identified in accordance with a number of strict criteria which the EC have indicated will be critical to their assessment:

Criteria includes pump prices that are consistently more expensive than the lowest pump price on the islands in the existing scheme, during the months examined.

Towns must also be over 100 miles by road from the nearest refinery.

In addition, the local population density must be no higher than any area in the current scheme. The highest population density of the islands in the current scheme is 135 people per km2.

Towns that have not adequately fulfilled these criteria have not been shortlisted as the government believes they are "extremely unlikely" to receive approval from Brussels.

The current rural fuel scheme came into effect in March 2012.

It covers the Inner and Outer Hebrides, the Northern Isles, the Islands of the Clyde and the Isles of Scilly.

Road fuel retailers on the islands can register with HM Revenue & Customs (HMRC) to claim back five ppl relief on unleaded petrol and diesel for retail sale within the eligible areas.

The government said the scheme had successfully reduced fuel prices on the islands relative to the UK mainland. Pump prices had consistently been 5p lower relative to the mainland, it said.