Fuel discount for remote areas?

Motorists in remote areas of Wales could pay less for petrol and diesel under UK Government proposals to extend an existing fuel rebate scheme. Islanders off the coast of Scotland and in the Isles of Scilly already get a 5p discount on fuel.

AA: 'High price of fuel damages business and budgets'

Paul Watters is Head of Roads Policy for the AA. He believes rural areas of Wales would welcome an extension of the existing fuel rebate scheme, but warns that it must be 'considered and explored properly, with the areas defined fairly'.

He added: "We've done it in Scotland, so therefore there's no reason why we can't do it in Wales, if the communities agree."

Here he explains to ITV News the importance of paying a fair price at the pumps, and how this might be achieved.

How the current rural fuel rebate scheme works

  • The current rebate scheme allows fuel retailers 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 5p per litre relief on unleaded petrol and diesel for retail sale within eligible areas.
  • Fuel retailers within the areas concerned can register with HMRC to claim 5p per litre relief on fuel purchased on or after 1 January 2012 for onward retail sale in the Inner and Outer Hebrides, the Northern Isles, the Islands of the Clyde and the Isles of Scilly.
  • Retailers can make claims on a monthly basis and have 60 days following registration to reduce the cost of every litre of road fuel sold by the equivalent amount of the relief claimed. This is so that all consumers in the areas concerned benefit from the reduction in fuel duty.

The UK Government is proposing to extend the scheme to Anglesey, Gwynedd, Powys and Monmouthshire.

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Fuel discount for remote areas?

Prices at the pump could fall Credit: Lewis Whyld/PA Wire

Motorists in remote areas of Wales could pay less for petrol and diesel under UK Government proposals to extend a fuel rebate scheme.

Petrol stations and other fuel retailers in Anglesey, Gwynedd, Powys and Monmouthshire will be asked how much they charged for petrol and diesel in the last quarter of 2012.

Ministers will then seek permission from the European Commission to extend the discount scheme to those areas - but only if the cost is similar to the islands within the current scheme.

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