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Fuel duty cut from March 1, 2012

The UK Treasury has confirmed today that motorists in the isles will benefit from a 5p per litre cut in fuel prices from March 1, 2012.

Chief Secretary to the Treasury, Danny Alexander, announced this morning that final EU approval for the derogation scheme had been received and the rebate, which will be the largest of its kind in Europe, will come into force at the beginning of the spring.

Welcoming the announcement, Northern Isles MP Alistair Carmichael said: “People in Orkney and Shetland have been forced to pay over the odds for their fuel for many years and I know that the announcement today will be welcomed across the isles.”

He added: “The introduction of a duty cut for drivers in island communities was a genuine priority for the coalition government and I am pleased that we now have a firm date for the start of the scheme. This duty cut, which is the largest of its kind in the EU, will go some way towards providing local motorists with relief from high prices. It remains the case however, that we will still be paying substantially more for our petrol and diesel. I still want the competition authorities to explain why our market fails and to sort it.”

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