Fuel discount could rise

MONEY is available to increase the fuel duty derogation for island communities from 5pence to 7.5 p per litre, according to western isles MP Angus MacNeil.

Speaking after a fuel summit, held in Glasgow on Thursday, the western isles MP said the current scheme of a 5 pence discount was costing the Treasury just £3.3 million.

“As the budget for the derogation was £5million therefore an additional 2½p derogation could be possible while remaining in budget.  This could mean a total derogation of 7½p. 

“I feel that the Westminster government should investigate with the EU the possibility of increasing the derogation.”

He added: “There may be a need for a rural fuel price regulator for rural areas of Scotland but realistically I can’t see that happening before Scotland becomes independent, as it will not be a priority for Westminster.”