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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.
Motorists will be able to buy cheaper petrol tomorrow after four leading supermarkets announced they were cutting prices.
Here are the cuts:
- Asda are reducing the price of petrol by 2p a litre. Diesel continues at 137.7p a litre.
- Sainsbury's also announced a petrol cut of up to 2p a litre.
- Morrisons will cut petrol by 3p a litre and 1p a litre off diesel.
- Tesco is bringing in a cut of up to 2p a litre.
AA president Edmund King welcomed the cuts, he said: "We predicted these cuts last week, with oil down to its lowest level in a month and the pound gaining on the dollar after its recent fall.
"This is perhaps another glimmer of sunlight for drivers after a hard, wet, pot-holed and expensive winter of driving."
Campaigners are putting pressure on the Government to cut duty on fuel. The Tax Payer's Alliance and the Petrol Retailer's Association are setting up stands on independent forecourts to ask motorists to lobby local MP's.
Sixty pence in every pound spent on petrol or diesel in the UK goes to the treasury. UK has the highest tax on unleaded petrol in the EU.
Forecourt owners like Allan Glendinning in Prudhoe, in Northumberland, say the situation is desperate.
Campaigners against high fuel tax will be on forecourts across the region this morning to tell customers how much their petrol costs and how much money is going to the Treasury. Over 5,000 stands will be set up across the country.
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