Islanders’ fuel deal moves closer

France successfully applied for lower fuel costs on Corsica

The European Commission has received a request for lower fuel costs on UK islands, the BBC understands.

The UK government hopes to take 5p off a litre of fuel on the Northern and Western isles, Argyll and Clyde islands and the Isles of Scilly.

It could be autumn before the bid is processed and voted on by finance ministers, EC sources have said.

The Scottish Liberal Democrat conference in Perth was told the application had been made.

Chief Secretary to the Treasury Danny Alexander said permission to introduce the discount for island communities had been sought from the EC.

He said: “Everyone in the country is feeling the pressure of high fuel prices.

“But these island communities are where the prices are highest and the pressure is huge on families and I’m delighted to be part of a government that is going to deliver that help to those hard-pressed island communities.”

Under the Energy Tax Directive of the European Union – which the UK is signed up to – minimum rates for fuel duty are set down and each country must have a standardised rate within their borders.

UK ministers require permission to lower costs.

Sources in Brussels have told BBC 5 Live the application arrived from the Treasury on Thursday.

France applied for permission to lower the rate of duty it charges in Corsica, and this was granted.

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