Rural Fuel Duty Consultation

11th August 2011

Council responds to UK Government consultation on rural fuel duty

The Highland Council is committed to campaign for fair and equitable fuel prices across the Highlands and Islands and yesterday (Thursday 11 August 2001) members of the TEC Services Committee approved a response to the UK Government's consultation on the Rural Fuel Duty Rebate Pilot Scheme.

Chairman of the TEC Services Committee, Councillor John Laing said: "We strongly support the introduction of the scheme, however in our response we stress that it must be set up in such a way as to actively encourage local fuel retailers to participate. We believe that the current proposal, which involves the repayment of the 5 pence per litre in arrears, is likely to put a number of businesses at financial risk. We also want to see the proposed scheme extended to the remote areas of the mainland Highlands where the population is low and the impact of high fuel prices is comparable with the Island communities.

"In March of this year we wrote to the Chancellor of the Exchequer to argue the case that 5 pence per litre is too low to make a real impact on the pump prices. In our formal response to the consultation we have once again stated that we would prefer to see a percentage reduction to protect against future increases in fuel prices."

Chairman of the Planning, Environment and Development Committee, Councillor Ian Ross added: "People living in our remote communities and the thousands of tourists who holiday and visit the many high quality visitor attractions across the Highlands rely on a secure and available fuel supply - it is crucial that there no perception or concerns over limitations in fuel availability or high costs. The Rural Fuel Duty Rebate Scheme is only part of the solution to help the Highlands and Islands retain a viable network of rural filling stations. We face a significant challenge but as a Council we are fully committed to making further robust representations - this includes looking at capital investment in new equipment and alternative renewable fuels. Our focus remains very much on ensuring there is the necessary support to maintain an effective fuel supply network across the whole area, this is vital for the sustainability of our rural communities and key industries."