25/11/2011

Drivers In Remote Islands Get Fuel Discount

The Government has announced that from March 2012 motorists in remote island communities will get a 5p per litre fuel discount.

Chief Secretary to the Treasury Danny Alexander made the announcement on Friday morning, after the Government received final EU clearance to operate its "rural fuel rebate pilot scheme" in the Inner & Outer Hebrides, Northern Isles, islands in the Clyde and the Isles of Scilly.

Mr Alexander said the scheme will bring much needed relief to remote islands, where pump prices are particularly high due to transportation costs.

The MP said: “This is terrific news for island communities, which have long suffered the effects of high fuel costs. From 1 March next year, islanders will see a 5p cut in the pump price of petrol and diesel.

“As well as securing EU clearance, we have produced a scheme designed to protect the cashflow of local retailers. We have also delivered on a promise to help address the persistent unfairness of some of the lowest income communities in the country paying among the highest pump prices.

“After years of people saying this could not be done, the Government has delivered it in less than two. This is another example of our determination to govern for the benefit of the whole United Kingdom.”

Fuel retailers on the islands will receive a 5p a litre rebate on the petrol and diesel they purchase and will be required to pass on the full saving to the customer.

To ensure that retailers suffer no cashflow problems in passing on the discount from 1 March, they will be able to claim the 5p rebate from HM Revenue & Customs (HMRC) on fuel purchased from 1 January next year.

(DW)

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