UK government supports extension of the rural fuel duty rebate scheme

On 28 February, the Petrol Retailers Association (PRA) raised the issue of the Rural Fuel Duty Rebate Scheme at a meeting with HM Treasury and HMRC. Brian Madderson, PRA chairman, met with Humza Yousaf MSP, minister for transport policy and the islands, for discussions when visiting the Scottish Government in Edinburgh.

He commented, “The Islands Scheme was introduced by Danny Alexander MP on 1 January 2012 when he was chief secretary to the Treasury. This scheme was confined to filling stations (PFS) in the Western Isles of Scotland and the Isles of Scilly.

“The mainland scheme followed from 1 April 2015, and as well as many additional filling stations on the Scottish mainland, it also included 4 rural PFS in England.   With both schemes, the PFS are all independently owned and represented by PRA. The retailers are naturally concerned about the Schemes going forward.

“HM Treasury and HMRC were able to confirm that each scheme was valid for 6 years – therefore renewal dates of 31 December 2017 and 31 March 2020 would apply.

“The UK government is currently discussing with the EU commission about extending the derogation for the Islands Scheme. Decisions on any extension to the Mainland Scheme may take place after the UK has left the European Union.”

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