Scots to get 5p cut at petrol pumps 04 | 03 | 2011

    PETROL AND DIESEL prices for thousands of Scots motorists are set to fall by 5p a litre; but the savings will only apply to drivers living on the Scottish Islands.

    With motorists on the islands continuing to suffer as prices soar, Danny Alexander, the government's Treasury Chief Secretary, will today confirm Westminster is to make a formal application to the European Union for permission to run a pilot scheme aimed at providing provide relief.

    Of course, it's worth highlighting the timing of this announcement. Despite months of campaigning for the reductions to be made, today's announcement comes with the Holyrood elections just round the corner.

    On one Scottish island — Colonsay — diesel has already reached 163p per litre; but yesterday even the cheapest prices on the islands were between 6p and 14p above the UK average.

    Pressure, of course, is gradually building across the whole of the rest of Scotland and the UK for the government to take action across the country to help reduce the cost of diesel and petrol and the fuel pumps. Clearly the coalition believes today's move will help allay some of the criticism it has received.

    No repeat of the mass protests

    Sensibly — and thankfully — there has so far been no repeat of the mass protests and blocked refineries which we all witnessed in the fuel crisis of 2000 and which rocked the Blair government. That though does not mean there isn't a feeling of dissatisfaction; earlier this week a 130,000-signature petition was presented at Downing Street calling for action on the issue.

    Alexander will announce the application at the Scottish Liberal Democrat conference today and, following extensive informal discussions with officials, he is confident he will manage to get the scheme through the EU. Other member states, including France and Greece, already have similar discount policies in place to assist motorists on their islands.

    The Scottish plan — which was originally intended to be limited to just the Northern Isles, Western Isles and Hebrides — will now also encapsulate the Clyde islands, including Arran. Skye, which was originally excluded because it's linked to the mainland by a road bridge, will now also be covered. It's calculated the discount package will cost the Treasury around £2 million.

    "It is something that will make a significant difference to island communities, who face the highest fuel prices in the whole country," Alexander, who explained the application will now go to the commission and will have to be agreed by all 27 member states, said today.

    "I'm very proud that this is something, as a government ,we've been able to take forward. As a consequence of the informal discussions we've had with the EU Commission, I'm very confident we can deliver. In the next few months we will be able to get the approval we need for the scheme."

    Plan to cancel next fuel duty rise

    Of course, it's worth highlighting the timing of this announcement. Despite months of campaigning for the reductions to be made, today's announcement comes with the Holyrood elections just round the corner.

    On the wider motoring stage, Tory Chancellor George Osborne is set to announce the cancellation of the next planned fuel duty rise in the Budget later this month. It's also widely expected he will announce the introduction of a fuel regulator so the government can help bear some of the costs of the rise in the price of oil.

    It will though be an expensive decision: the cancellation of the fuel duty rise alone will cost the Treasury £250m.

    Not surprisingly, the call for significant action on reducing the cost of fuel at the pumps for families across Scotland has been strongest in Holyrood.

    "It is simply unacceptable that in an energy-rich country such as Scotland, motorists and businesses are facing some of the highest fuel prices in Europe," SNP transport minister Keith Brown told MSPs this week.

    "The Chancellor must use his Budget statement to cancel the rise in fuel duty planned for next month. It is vital the UK government heeds this message and does not put further pressure on motorists at this TIME." It looks like those calls have, finally, been answered.

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    Jim McGill

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