MOTORISTS living in some of the most rural communities can now benefit from a 5p per litre fuel price cut.

The government's rural fuel rebate scheme will allow 125,000 people to benefit from cheaper fuel.

Many people who live in these areas face some of the UK's highest road fuel prices.

It follows a year-long approvals process by the European Union.

    See also: Rural fuel discount is step nearer

Although the UK's most rural islands already receive this discount, it is the first time that Brussels has approved this fuel discount anywhere in mainland Europe.

The discount came into effect on Sunday (31 May).

Treasury secretary Damian Hinds said: People living in some of the UK's most rural areas will now benefit from a 5p per litre fuel discount thanks to the Rural Fuel Rebate.

"Fuel is often more expensive in very rural areas, even though cars are more of a necessity.

"However, people in seventeen areas ranging from the Highlands to Devon will now be able to buy cheaper fuel, making travelling to work and school far easier."

The 17 postcode areas which will benefit from the price cut are:

* IV54 (Highland – Scotland)
* IV26 (Highland – Scotland)
* IV27 (Highland – Scotland)
* NE48 (Northumberland – England)
* PH41 (Highland – Scotland)
* KW12 (Highland – Scotland)
* PA80 (Argyll and Bute – Scotland)
* PH36 (Highland – Scotland)
* IV22 (Highland – Scotland)
* PA38 (Argyll and Bute – Scotland)
* PH23 (Highland – Scotland)
* PH19 (Highland – Scotland)
* IV21 (Highland – Scotland)
* LA17 (Cumbria – England)
* EX35 (Devon – England)
* IV14 (Highland – Scotland)
* Hawes (North Yorkshire – England)

These areas were selected using a range of criteria.

The discount applies to places where pump prices were more expensive than the lowest pump price on the islands in the existing scheme.

Discount areas also had to be over 100 miles by road from the nearest refinery.

Areas that did not adequately fulfil these criteria were not included in the application, as the government considered them to be unlikely to receive EU approval.

Retailers in selected areas could register for the scheme from 1 April.

They are now able to claim back 5p per litre duty relief on purchases of unleaded petrol and diesel for retail sale within the eligible areas.