HM Treasury

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29 February 2012

Fuel price cut comes into force for remote islands

Motorists in many remote island communities will benefit from a 5 pence per litre discount on pump prices from tomorrow, 1 March 2012.

The Chief Secretary to the Treasury, Danny Alexander, announced in November 2011 that final EU clearance had been received for the rural fuel rebate pilot scheme to go ahead this year.

The scheme has been well subscribed since it opened for applications in January and more than 90 businesses in the Inner & Outer Hebrides, Northern Isles, Islands in the Clyde and Isles of Scilly have applied to take part.

Pump prices are particularly high in these areas due to high transportation costs.

Speaking ahead of a visit to the Isle of Skye, Danny Alexander said:

"It’s terrific that islanders in Scotland and the Isles of Scilly will finally begin to see a cut in fuel prices after years facing higher costs. This will make a real difference to people who face the highest fuel costs in the country.

"The Government has shown the naysayers that real action is possible and this discount will deliver real benefits to motorists and businesses in remote island communities.

"This shows yet again how a government for the whole of the United Kingdom can, and is, delivering real results for Scotland."

Notes for Editors

1. Fuel retailers on remote islands have been able to apply for the scheme and receive a rebate on the fuel they purchase from 1 January 2012.
2. To ensure that they do not suffer from cash flow problems, retailers are required to pass on the full saving to the customer 60 days after they register for the scheme.

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