By Richard Johnstone | 11 November 2013
The government has issued a call for evidence on its plan to introduce a rebate on fuel duty in rural areas of England and Scotland, ahead of an application to the European Commission for approval.
Ministers announced on Friday they were preparing to submit details of the scheme to provide a discount to the commission. The policy needs to be approved to ensure it complies with European Union rules governing state aid to companies.
This supplementary call for information, which will last for four weeks, will allow retailers that did not respond as part of an original consultation a second opportunity to do so.
The UK government is seeking a five pence per litre (ppl) cut in fuel duty, initially in ten selected areas. This would be claimed by retailers, allowing them to pass the discount onto customers.
Locations have been selected following an examination of fuel prices in rural areas to determine if the market exhibits similar characteristics to islands already eligible for a discount.
The current fuel scheme for islands came into effect in March 2012. Retailers of road fuel within the Inner and Outer Hebrides, the Northern Isles, the Islands of the Clyde and the Isles of Scilly can claim ppl relief on unleaded petrol and diesel.
Ten mainland areas have been selected because prices are more expensive than the lowest pump price on the islands in the existing scheme, if the rebate is excluded. The commission had indicated that such a comparison would be critical in their assessment of admissibility.
The new consultation could also lead to more areas being added to the scheme if they meet the price criteria, Chief Secretary to the Treasury Danny Alexander said on Friday.
‘I want to ensure as many areas as possible can benefit from this scheme so have decided to issue a supplementary call for information so everyone has another chance to try and qualify for the scheme.’
The ten areas already included in the scheme are:
Acharacle (Scotland – Lochaber), postcode: PH36
Achnasheen (Scotland – Ross & Cromarty), postcode: IV22
Appin (Scotland – Argyll and Bute) postcode: PA38
Carrbridge (Scotland - Badenoch and Strathspey), postcode: PH23
Dalwhinnie (Scotland - Badenoch and Strathspey), postcode: PH19
Gairloch (Scotland - Ross & Cromarty), postcode: IV21
Hawes (England – North Yorkshire), postcode: DL8 3
Kirkby-in-Furness (England – Cumbria), postcode: LA17
Lynton (England – Devon), postcode: EX35
Strathpeffer (Scotland - Ross & Cromarty), postcode: IV14
