AREAS of the Highland mainland could be included in a cut-price fuel scheme – if a new initiative for the islands proves a success.
Chief Secretary to the Treasury Danny Alexander revealed the potential move yesterday as he marked the start of the discount programme, which will take 5p off the duty for motorists in Skye, the Western Isles, Shetland and Orkney. He joined the operators of community-owned Uig Filling Station on Skye to watch the prices being lowered on a sign outside the business.
He refused to let recent island fuel rises – that could cancel out the 5p cut – take the gloss off the big occasion.
The Treasury is investigating price rises amid accusations of profiteering – and Mr Alexander yesterday warned a formal probe could be launched if the claims are substantiated.
“It would be outrageous if that was going on,” he said. “I don’t want to accuse anyone of doing anything when I don’t have evidence of it, but what I do want to do is send out a very clear warning that profiteering on the back of this scheme would be wrong and unacceptable, and the government would seek to do everything it could to stop it.”
Mr Alexander said the focus was to ensure the new scheme was a success – and he did not rule out the possibility of extending the discount to other areas in the future. But he said European rules meant it would be harder to introduce on the mainland.
Mr Alexander said: “If we could find a way to do something very limited and to focus on the most remote mainland areas, I would be certainly interested in that.”
He insisted he wanted the discount scheme to be a permanent feature for the islands. “It’s a good thing for this area,” he added. “It’s not going to deal with the entire difference in cost between the islands and mainland, but it will make a difference.”
There have been calls for Chancellor George Osborne to cancel a planned 3p fuel duty rise – but Mr Alexander refused to reveal what next month’s Budget might hold for motorists.
He said: “Having taken steps so that the level of fuel is 10p per litre less than it would have been under the Labour government, I’m conscious of the country’s financial position so I don’t want to get people’s hopes up about a future policy.”
As he hailed the start of the discount scheme, Skye and Lochalsh station owners revealed their next fuel delivery would cost more. Gordon Mackenzie of Uig Filling Station, said the price would rise 2p a litre.
While prices at Uig and elsewhere on Skye dropped to 144.9 per litre of diesel and 137p for unleaded, over the bridge at Kyle, which is excluded from the scheme, it was a different story. Prices were 151p for diesel and 147.9p for unleaded. Further south at Glen Shiel, prices were 151.9p for diesel and 142.9p unleaded.