Analysis of the impact of the Rural Fuel Duty Relief and whether the price of fuel in the scheme areas has reduced relative to the rest of the UK.
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HM Revenue and Customs Working Paper 15: Evaluating the Impact of the Rural Fuel Duty Relief
Under a pilot scheme, registered retailers in the Inner and Outer Hebrides, Northern Isles, islands in the Clyde and the Isles of Scilly are entitled to claim 5 pence per litre relief on fuel purchased after 1 January 2012 and were required from March 2012 to reduce the price of fuel they sell by an equivalent amount to the relief claimed.
This evaluation establishes whether the relief has reduced the pump price of petrol and diesel charged to consumers in the scheme at an aggregate level. The analysis also assesses: whether retailers have passed on the full value of the rebate to consumers; whether the effect of the rebate has differed between islands or fuel types; and whether competition has impacted prices in coastal towns on the mainland.