LISTEN: Fuel Rebate For Parts Of The Highlands

Drivers in parts of the Highlands are to get a discount on petrol and diesel thanks to a rebate scheme.

The rural fuel rebate is being extended to 17 of the most isolated communities in Scotland and England at the end of May, allowing motorists living there to get 5p off every litre.

Chief Secretary to the Treasury Danny Alexander said the move will help up to 125,000 people in areas that are currently faced with some of the highest fuel prices in the country.

It is the first time that the European Union has approved a fuel discount for people living on the UK mainland.

Currently, islanders off the coast of Scotland and in the Isles of Scilly are eligible for a 5p discount on petrol and diesel because the costs of transporting fuel there means prices at the pump are much higher.

From the start of next month, people living in 17 parts of the UK will be able to register for the scheme, with the rebate then coming into effect from May 31.

MFR Reporter Derek Ferguson speaks with Danny Alexander about the rural fuel rebate...

Mr Alexander 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.

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.

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 April 1. 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.''

The rebate will apply in the postcode areas IV14, IV21, IV22, IV26, IV27, IV54, PH19, PH23, PH36, PH41 and KW12, all in the Scottish Highlands, as well as those in the PA38 and PA80 areas of Argyll and Bute.

In England it will help those in the NE48 area of Northumberland, the LA17 area of Cumbria, the EX35 area of Devon and Hawes in North Yorkshire.

Professor Stephen Glaister, director of the RAC Foundation, said: The announcement comes as prices are starting to edge up again from recent lows and this is good news for many people in remote areas who are likely to be driving further than the UK average.

But we must not forget the biggest influence on the price of fuel remains the Chancellor who is taking more than two-thirds of what we pay at the pumps in tax.''

AA spokesman Luke Bosdet said: A £2.50-a-tank saving for remote rural motorists, often on low incomes but having to drive higher mileages, is very welcome.

However, without fuel price transparency, those rural communities will not be able to tell if the full rebate has been passed on to them or some of it snaffled by retailers.

Likewise, retailers will not be able to avoid suspicion unless they can show that price changes on their forecourts reflect changes in wholesale costs.''

He went on: Other rural areas in East Anglia, Cornwall and Wales will be disappointed that they missed out on the rebate, even though they regularly record the highest average pump prices in the UK.''