Plans to Extend the Fuel Rebate Proves to be Complicated
Campaigners within the fuel industry have suggested that the plans to extend the fuel rebate scheme to rural areas of mainland Britain could prove tricky and will be “fraught with difficulties” and possibly cause other problems.
The Treasury chief secretary Danny Alexander announced last week that he was having a consultation to extend the rebate scheme. The proposed scheme would involve fuel retailers in remote areas can claim up to 5ppl back on the price of fuel, so long as they pass those savings on to the consumers and other remote areas in the UK where the fuel price seems to be particularly high. Around 1,500 fuel retailers around Britain are being consulted in all rural areas and will need the European Commission’s approval this autumn.
The scheme has met a good response from fuel campaigners and retailers but some are questioning how this scheme will effectively reduce pump prices and how fair the scheme really is. Howard Cox of FFUK said that he couldn’t see how the scheme would work without distorting the market and could cause resentment between areas and businesses. He did say that “a nationwide cut in fuel duty would be more preferable” and James Hookham from the FTA (Freight Transport Association) said that the scheme was “clear recognition that the government accepts the need for a cut in fuel duty, but it needs to be across the country, not just in rural areas.”
For more information visit FairFuel UK website.
The Treasury chief secretary Danny Alexander announced last week that he was having a consultation to extend the rebate scheme. The proposed scheme would involve fuel retailers in remote areas can claim up to 5ppl back on the price of fuel, so long as they pass those savings on to the consumers and other remote areas in the UK where the fuel price seems to be particularly high. Around 1,500 fuel retailers around Britain are being consulted in all rural areas and will need the European Commission’s approval this autumn.
The scheme has met a good response from fuel campaigners and retailers but some are questioning how this scheme will effectively reduce pump prices and how fair the scheme really is. Howard Cox of FFUK said that he couldn’t see how the scheme would work without distorting the market and could cause resentment between areas and businesses. He did say that “a nationwide cut in fuel duty would be more preferable” and James Hookham from the FTA (Freight Transport Association) said that the scheme was “clear recognition that the government accepts the need for a cut in fuel duty, but it needs to be across the country, not just in rural areas.”
For more information visit FairFuel UK website.
