Petrol stations insome of the most remote areas could soon claim back up to five pence per litre of tax.
The government wants to bring down fuel prices in the areas around Hawes in North Yorkshire but the plans still need European Council approval.
Chief Secretary to the Treasury, Danny Alexander MP, says it will benefit the most isolated areas:
Petrol stations in two of the North East's most remote areas could claim back up to 5p per litre in tax within a few months.
The government wants to bring down fuel prices in Hawes in North Yorkshire and the area around Bellingham and Wark in Northumberland.
The proposals need approval from the European Council before they can be implemented.
Government plans to reduce fuel prices in rural areas have taken a step forward.
Fuel retailers in remote areas are being asked to let the government know how much they charge for petrol and diesel. The government is preparing to ask the European Commission for permission to extend the existing Island Fuel Rebate Scheme to remote rural areas on the mainland.
Areas that would be affected:
- North Yorkshire