posted 5 years ago

Government Scheme Could Cut Fuel Duty In Remote Areas

European Commission To Influence United Kingdom Fuel Duty

The Government hopes to expand a scheme that cuts fuel duty for motorists in remote areas. However, it must first receive permission from the European Commission to vary its rate – a decision that is expected at some point in 2014. The scheme has been running for some time in areas such as the Hebrides, Northern Isles, islands in the Clyde and the Isles of Scilly. The Government now wants to include Strathcarron, Ullapool, Lairg, Mallaig and Halkirk in the Highlands, Oban in Argyll and Bute, and Hexham in Northumberland. The Treasury has estimated that extending its range should benefit about 125,000 motorists.

Cost Of Fuel In Rural Areas

The Government wants to reduce fuel duty in remote areas to make prices at the pump more consistent with the rest of the county. They can, after all, be considerably higher. Why? Because the fuel suppliers – i.e. the companies that sell to the retailers – tend to charge more to deliver to parts of the world that are a long way from their refineries. That is reasonable as covering the extra mileage has cost implications in terms of wear and tear on their vehicles, consumed fuel, staff time, etc. This expense is then passed onto the motorists via the pumps. That can be a considerable financial burden, and one that is hard to sidestep as public transport in remote areas tends to be relatively sparse. 

Petrol Prices, Fuel Duty And VAT has revealed that if a litre of standard unleaded petrol costs 129.52 pence, then 79.54 pence is tax. This incorporates 57.95 pence duty and 21.59 VAT. As such, at these prices it costs £136.00 to fill the 105-litre fuel tank of a Range Rover 5.0-litre V8 Autobiography. Of this, a staggering £83.52 is claimed by the Treasury. Plus, of course, petrol prices in remote areas can be higher than 129.52 pence. In contrast, if a litre of standard diesel costs 137.05 pence then 57.95 pence is duty and 22.84 is VAT (total tax 80.79). It therefore costs £143.90 to fill the 4.4-litre diesel version of a Range Rover. Of this, £84.83 is tax. Whereas there are lesser cars that are cheaper to run, a four-wheel-drive could be considered a necessity in parts of the country that frequently experience harsh weather. No doubt drivers in remote areas would welcome a tax break.


The problem about the level of fuel duty and VAT combined is that it forms a much higher proportion of income in remote and rural areas that it does for town and city dwellers. This is why the EU agreed to a 5p drop in duty in North Yorkshire, in the district of Hawes, a few months back.Let's now hope that the Chancellor reaches an agreement for more widespread cuts in fuel duty across Britain's remote areas.

Shows how messed up these civil servants are, al Halkirk on the list as an are to receive help doesn't have a petrol station. Crazy

If a 4x4 is a necessity and you can afford £60-£90k for a Range Rover then you can probably afford to stick fuel in it.............

Areas such as Cornwall are not as well served by public transport therefore the car is a necessity in such areas - and so should be subsidised. Sadly Cornwall is not considered 'rural' enough for this help.

Tina, few things in life are fair. I don't expect rural dwellers to subsidise my mortgage because they live in low cost property so I'm not sure why I should subsidise their fuel (which I would be since the government will still want their tax regardless of where it comes from). If it's not farmers moaning because it's too hot, cold, wet, dry, windy or complaining their huge subsidies are being cut it's other country folk moaning about fuel prices.

What a joke we live approx. ten miles from three refineries and we pay top prices in Pembrokeshire

Kerry Chatham > I think you seem to be missing the point that not everyone chooses to live where they are, nor do they have the luxury of moving. Plus if everyone moved to a city there would be even less opportunities or housing for those who already live there, some have got to live rurally and they who do, miss out on many things the city dwellers do not, why should they be punished for this ? Please remove your blinkers and really see what the situation is try to see it from both sides not just yours !

If you choose to live in a rural part of the country then there is a price to pay. Ultimately, it seems that rural dwellers expect the rest of society to subsidise their lifestyle. Am I missing something here?

Shetland ! That place people think is not there ? Well it is and we have the dearest fuel in UK and we have one of the largest Oil terminals in Europe. Still we're not rural are we ?

So the government thinks rural areas are hard done by & deserve help with fuel because it costs more, I assume they will reduce the tax on houses (stamp duty )in London they cost a hell of a lot more than rural areas.

Simon says Wales is not included. it should be. Typical of such announcements is that as usual Northern Ireland doesn't even seem to exist. We live halfway up a mountain 2 miles from the nearest village 25 miles from the nearest town, 110 miles from Belfast and in the most western part of the UK. Like people in parts of Wales England and mainland Scotland where are as rural as you can be. Don't forget Northern Ireland. Kevin

Well when I enquire about mains gas, high speed internet, lack of police on the beat, poor condition of roads (the list goes on) its all down to the fact that I live in a rural community, oh so if that's the case then I get cheap fuel, apparently not as im not rural enough! they use the argument on one hand and take it away with the other!

So what about Cornwall that's more remote than Wales. Oh I forgot the government's think that England terminates at the Tamar river and we don't exist !!!

Wales not included - a refinery at Milford Haven & we pay some of they higher fuel prices in the country, so transportation costs inflating prices is a farce

As usual Wales is not included! After all Wales is not Rural and doesn't have Any remote communities, does it? !!!!!!