Chief Secretary to
the Treasury Danny Alexander has today announced that from March
2012motorists in remote island communities will benefit from a 5
pence a litre fuel discount.
The announcement came after the Government received final EU
clearance to operate its rural fuel rebate pilot scheme in the
Inner & Outer Hebrides, Northern Isles, islands in the
Clyde and the Isles of Scilly.
The scheme will bring much needed relief to remote islands, where
pump prices are particularly high due to transportation costs.
Danny Alexander said:
“This is terrific news for island communities, which have long
suffered the effects of high fuel costs. From 1 March next year,
islanders will see a 5p cut in the pump price of petrol and
diesel.
“As well as securing EU clearance, we have produced a
scheme designed to protect the cashflow of local retailers. We
have also delivered on a promise to help address the persistent
unfairness of some of the lowest income communities in the country
paying among the highest pump prices.
“After years of people
saying this could not be done, the Government has delivered it in
less than two.
“This is another example of our determination
to govern for the benefit of the whole United Kingdom.”
Fuel retailers on the islands will receive a 5p a litre rebate on
the petrol and diesel they purchase and will be required to pass
on the full saving to the customer.
To ensure that retailers suffer no cashflow problems in passing
on the discount from 1 March, they will be able to claim the 5p
rebate from HM Revenue & Customs (HMRC) on fuel purchased
from 1 January next year.
Notes for Editors
1. The Government intends to begin the rural fuel rebate pilot
scheme from 1 January 2012, with retailers required to pass on the
discount in pump prices from 1 March 2012
2. Draft legislation
for the pilot scheme has today been published on the HMRC website.
To read it, please visit http://www.hmrc.gov.uk/drafts/index.htm#http://www.hmrc.gov.uk/drafts/index.htm
3. To implement the pilot scheme, the UK required derogation
from the Energy Tax Directive.
4. To support retailers in
covering the initial costs of the scheme, HMRC will provide an
up-front rebate. From 1 January 2012, retailers will be allowed to
claim a 5p a litre refund on fuel purchased in each of their first
two months in the scheme, without having to pass on the discount
to customers until 1 March 2012. Retailers will submit a claims
form once a month for fuel purchased during that period, and can
expect the rebate no more than 30 days later.
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