News / 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.”
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