News story

Government seeks supplementary information on rural fuel rebate scheme extension

This news article was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

The government is giving fuel retailers the opportunity to submit further information to the Treasury as part of its plan to extend the island fuel discount to mainland rural areas.

The supplementary call for information, which will last for four weeks, is designed to allow retailers which did not submit data as part of the original call for information a second opportunity to respond. The government aims to submit its application to the European Commission in January.

This could see further areas added to the scheme providing they meet the strict criteria that the European Commission has indicated will be critical in their assessment:

Pump Price Threshold

Pump prices have to be more expensive than the lowest pump price on the islands in the existing scheme (not including the current rebate), during the months examined:

  October 2012 November 2012 December 2012
Petrol 145ppl 139ppl 140ppl
Diesel 149ppl 149ppl 146ppl

Cost of Transporting Fuel

Places have to be over 100 miles by road from the nearest refinery.

Population Density

The population density must be no higher than any area in the current scheme.

The areas that have already qualified will remain part of the application and will not need to submit further information.

Chief Secretary Danny Alexander said:

I want to ensure as many areas as possible can benefit from this scheme so have decided to issue a supplementary call for information so everyone has another chance to try and qualify for the scheme.

The government made an initial announcement of ten areas that would be put forward in an application to the European Commission last month.