posted 1 year ago

Drivers In Remote Areas To Get Cheaper Fuel

Rural Fuel Rebate Gets Green Light

Motorists in remote rural areas with high fuel prices will see the cost fall 5 pence per-litre from May 31st 2015, the Government said. 

This Rural Fuel Rebate recognises that prices in remote areas can be high thanks to the cost of transporting it long distances from the refineries. The Government considers this unfair as a lack of public transport makes rural drivers dependent on private vehicles.

The rebate enables retailers to claim back 5 pence per-litre duty relief on unleaded and diesel, then pass the savings to customers.

Government Acted To Help Drivers

Danny Alexander, The Chief Secretary to the Treasury said: “Thanks to my action in government, motorists across some of the UK’s most remote rural areas will now benefit from a fuel discount.” He added: “I have made introducing the Rural Fuel Rebate a top priority because I know from my own experience that cars are a necessity, not a luxury, for people living in remote communities – and that petrol in these areas is far more expensive than the rest of the UK.”

Areas Chosen On Strict Criteria

The Rural Fuel Rebate was introduced in March 2012 and has since helped motorists on islands such as the Isles of Scilly and the Inner/Outer Hebrides. For the first time - following a year long approval process – the European Union has extended it to cover parts of the mainland. The 17 selected areas were chosen based on fuel prices, the cost of transportation and population density. 

Selected areas are in Scotland, Northern England and Southern England, specifically: IV54, IV26, IV27, NE48, PH41, KW12, PA80, PH36, IV22, PA38, PH23, PH19, IV21, LA17, EX35 IV14 and Hawes. The Government claims that 125,000 drivers will pay less at the pump.

Retailers To Claim Rebate From HMRC

Fuel retailers can register with HMRC to claim duty relief on a monthly basis “on purchases of unleaded petrol and diesel for retail sale within the eligible areas”, the Government explained.

Danny Alexander said: “People will see lower prices from the end of May, with filling stations in the 17 selected areas able to register for the scheme from 1 April”. He concluded: “Combined with the current fall in oil prices and the freeze in fuel duty rates nationwide, this 5p discount on fuel prices will provide a much-needed boost to families who face the highest fuel prices.”