Rural fuel duty relief scheme
The Rural fuel duty relief scheme has cut fuel duty in remote island communities by 5p per litre. The scheme applies to unleaded petrol, diesel, biodiesel, bioblend and bioethanol blend sold in the Inner and Outer Hebrides, the Northern Isles, the islands in the Clyde and the Isles of Scilly. Consumers in these areas have benefitted from the reduced fuel duty since March 2012.
The Government have recently announced that it is seeking to extend the island fuel rebate scheme to include other remote rural areas of the UK with higher fuel costs. As part of the process nearly 1,500 retailers in 36 counties and districts in England, Wales, Scotland and Northern Ireland are being consulted.
As any discount on the standard rate of fuel duty requires a derogation from the EU Energy Tax Directive, the government will need permission from the European Commission for any extension of the scheme.