Relief for drivers as January fuel duty increase is scrapped

Island drivers and hauliers will be breathing a sigh of relief after Chancellor George Osborne announced he was scrapping January’s planned rise in fuel duty.

Petrol and diesel was to have gone up by 3p a litre, but Mr Osborne said that would not now happen and a planned further increase for August of around 5p would be reduced to 3p.

Motorists in Shetland and other selected islands will benefit from a fuel duty reduction of 5p per litre from March when the so-called fuel derogation scheme is introduced.

Isles MP Alistair Carmichael said today: “People in the Northern Isles do not need to be told of the difficulties that high fuel prices are causing for families up and down the country. A freeze on fuel duty in January and the scrapping of plans for a further 2p per litre increase next autumn will make a real difference at the pumps. Along with the 5p duty derogation the government secured for the Northern Isles, the steps that the coalition has taken to support local motorists mean that the price of fuel is substantially less per litre now than would have been the case if Labour had remained in power.”