LOWER petrol prices are a step nearer for 17 remote rural communities after Brussels approved the plan.

The government's rural fuel rebate scheme cleared the major hurdle of European Commission approval on Thursday (15 January).

It means 17 of the UK's most rural communities are a step closer to getting up to a 5p per litre fuel price cut.

The government's chief secretary to the treasury Danny Alexander spearheaded the application for 17 of the UK's most rural mainland areas to receive a fuel duty discount last year.

It will allow 125,000 people who currently face some of the highest fuel prices in the country despite depending on cars for transport to benefit from cheaper fuel.

The UK's most rural islands already receive this discount, but it is be the first time ever that the commission has approved a fuel discount on the UK mainland.

Commission approval - needed because the scheme is seen as state aid - means the issue is now awaiting agreement from other member states through the Council of the European Union.

Mr Alexander said the government was pressing ahead with a formal consultation on the regulations necessary to implement the change with a view to doing so in the current parliament.

"This is great news for motorists in these areas and brings a duty discount a step closer. Even though fuel prices are falling across the country, they are still higher in very rural areas.

Rural residents set to benefit include those in the Scottish Highland postcode areas IV14, IV21, IV22, IV26, IV27, IV54, KW12, PH19, PH23, PH36 and PH41.

Other areas are PA38 and PA80 (Argyll and Bute), NE48 (Northumberland), LA17 (Cumbria), EX35 (Devon) and Hawes (North Yorkshire).

Mr Alexander said: "As someone who comes from one of the most rural areas in the UK, I know that for people who live in these areas cars are a necessity, not a luxury.

"I've fought hard to reach this major milestone."

Although there was one more stage to go, Mr Alexander said he wanted to make sure the government was ready to implement the scheme as a top priority.

He added: "I'm determined to implement the rural fuel rebate in the current parliament as part of this government's drive for a stronger economy and fairer society."

An existing rural fuel rebate scheme which came into effect in March 2012 already covers the Inner and Outer Hebrides, the Northern Isles, the Islands of the Clyde and the Isles of Scilly.

Criteria for inclusion in the scheme included a "pump price threshold" consistently more expensive than the lowest pump price on islands in the existing scheme.

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.

Retailers of road fuel within these geographical areas will be eligible to register with HMRC and to claim back up to 5p per litre duty relief on purchases of unleaded petrol and diesel.

They will be entitled to claim the relief from HMRC on a monthly basis.