Rural Fuel Tax Relief
We at Whatprice.co.uk are interested in all consumer products including the price of petrol through the UK. We have recently performed a comprehensive survey of fuel prices in Scotland and have some shocking results, and are so concerned by these findings that we hae decided to start a Campaign for Tax Relief at Rural Fuel stations.
Our data shows that the price of UK fuel is now 101.3p on average, and our study of Scottish prices shows that they too have breached the £1 mark and stand at 100.12p , but more importantly it also highlights the plight of the more rural areas and how much they have to pay over the odds for their petrol.
On the 16th November 2007 the prices for Unleaded fuel in Scottish areas are as follows:
Dundee (cheapest) - 98.9p
Edinburgh - 99.5p
Glasgow - 99.7p
Inverness - 105.1p
Isle of Lewis - 111.9p
And for Diesel
Dundee - 101.0p
Edinburgh - 101.1p
Aberdeen - 101.3p
Glasgow - 101.3p
Inverness - 106.4p
Isle of Lewis - 113. 9 p
The cheapest station we could find was an Independent station in Dundee, selling unleaded at 97.9p. Aberdeen had the most variation with Diesel costing between 107.9 and 98.9p.
The most expensive was in the Isle of Lewis, selling both Unleaded and Diesel for 113.9 .9p . It is these Rural areas that are hit particularly hard, with the petrol station owners claiming not be be making any money on their petrol sales due to the high transport fees that they have to pay. One ex-garage owner in the Isle of Lewis even states that it is cheaper for him to take the ferry to Inverness and fill up there.
After some brief research we at Whatprice discovered that there was a proposal in 2006 to give fuel duty relief on sales of all hydrocarbon fuels (including petrol) to the remote areas of Britain. You can read the debate at http://www.theyworkforyou.com/debates/?id=2006-07-04a.732.2. Unfortunately in this debate the proposal was rejected by a large majority.
We believe that this Rural discount pricing would provide a much fairer system for taxation, it would involve highlighting economically poor areas of Rural Britain and providing fuel duty relief on all sales at the pump. This would in turn give these areas an economic kick start and the price saving would filter down to all aspects of living in the remoter areas of the UK. Food and other Goods prices should go down as the cost of transportation decreases, and it could well end the ludacrouis situation where the locals drive for miles and miles just to buy cheaper fuel in the larger towns.
At the moment due to VAT being added to fuel these areas are actually paying the highest amount of tax per litre for their fuel, and those in the rural communities tend to lead a more sustainable life anyway, so why not reduce the taxation on fuel which is always described as a green tax by Parliament? This would be fairer for all, surely those who choose to lead a greener more sustainable way of life should be the ones who pay less green tax?
We propose that Rural Areas are allowed to sell their fuel subject to the reduced VAT rate of 5% instead of 17.5%, this would reduce the average price of petrol in these areas by around 12p bringing it back into line with the UK average price.
Please help our campaign and sign the official Government Online Petition.
Recent Unleaded Petrol Price Submissions
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"Laudable in its aim, but how would it be implemented? Define rural? In principle its obvious, but one could end up with neighbouring garages having huge differences(>10p) in prices. One would go out of business. Also the 'city folk' could end up driving out of town in their school run off-road vehicles to fill up with cheaper petrol. Maybe you could get a discount card if you live in a rural area, but then that's open to fraud and again who and how is that decided?"