Fuel retailers in remote areas of the UK are being asked to let the government know how much they charge for petrol and diesel as it prepares to seek permission from the European Commission to extend the island fuel rebate scheme.

The move could see a fuel rebate extended to other remote rural areas of the UK with higher fuel costs. Nearly 1,500 retailers in 35 counties and districts in England, Wales, Scotland and Northern Ireland are being consulted. An expanded scheme will require approval from the Commission and other Member States. The government aims to submit an application and evidence base in support of the scheme’s expansion over the autumn.

Danny Alexander, Chief Secretary to the Treasury said, “The island fuel rebate provides much needed help to keep down fuel prices in areas where costs of transporting fuel mean prices are much higher. I know that there are other remote rural areas of the UK with similarly high fuel costs. So we are today starting to gather further evidence that will form part of an application to the Commission to extend the island fuel duty discount scheme to very remote rural areas. We will need to prove that there are areas which are similar to the islands in terms of pump prices and distribution costs, so I would urge local areas that may qualify to provide the information we need to make the case as robust as possible. As a Highlander, I know that for people who live in rural areas driving is not a choice, but a necessity. So while it won’t be easy to get this agreed with the Commission, I want to do everything I can to make this happen.”

The current rebate scheme allows retailers of road fuel within the Inner and Outer Hebrides, the Northern Isles, the Islands of the Clyde and the Isles of Scilly to register with HM Revenue & Customs to claim back five pence per litre relief on unleaded petrol and diesel for retail sale within the eligible areas.