Plan to extend fuel rebate scheme

RURAL motorists could benefit from lower costs under government plans to extend its fuel rebate scheme for remote areas.



The government has launched a consultation into extending the scheme which currently offers a 5p/l discount on pump prices in the Scottish islands and the Isles of Scilly.


The current rural fuel rebate recognises that pump prices on the islands are high compared with the UK average, due to the cost of transporting and distributing fuel in the isolated communities.


Any extension of the scheme would look to provide support to other remote areas of the UK that experience high unleaded petrol and diesel prices for similar reasons.


A call for information launched by the government aims to identify fuel costs in remote areas.


It is inviting fuel retailers whose prices are at or above a given level in remote areas to fill out a detailed spreadsheet and submit supporting records to enable verification of the data.


Chief Secretary to the Treasury Danny Alexander said: "The move could see a fuel rebate extended to other remote rural areas of the UK with higher fuel costs.


"Nearly 1,500 retailers in 35 counties and districts in England, Wales, Scotland and Northern Ireland are being consulted.


"The island fuel rebate provides much needed help to keep down fuel prices in areas where costs of transporting fuel mean prices are much higher."


Mr Alexander acknowledged that getting the go-ahead from Brussels for an extension of the scheme wouldn't be easy.


But he added: "I want to do everything I can to make this happen."


The Countryside Alliance welcomed confirmation that the government would be seeking European Commission permission to extend the island fuel rebate scheme.


An average rural commute is 25% more expensive than the average urban commute, according to alliance research.


Higher fuel prices in rural areas hit motorists unfairly, not least because poor public transport makes driving a necessity, said alliance chairman Barney White-Spunner.


"The cost of fuel weighs far heavier on rural people.


"The car has fast become an unaffordable basic necessity, so we welcome the government's announcement to extend the islands fuel rebate scheme to remote rural areas in other parts of the UK."


Lib Dem MP Andrew George, who represents the West Cornwall & Isles of Scilly constituency of St Ives, has long campaigned for a fuel concession in remote areas.


Mr George said he had pressed Treasury ministers to recognise there were many areas where people had no choice but to have a car because there was little or no public transport.


"The system is massively unfair," he said.


"Urban folk enjoy a full range of often subsidised public transport options meaning that they can manage well without the expense of owning a car, whereas rural dwellers usually have no choice but to get a car just to get to work and to basic services."

SIGN UP TO OUR NEWSLETTER

Sign up to our newsletter to receive all the latest news and updates.