Rural fuel duty relief

The rural fuel duty relief scheme provides a 5 pence per litre reduction to fuel retailers in a number of specified rural areas on the standard UK rate of excise duty for unleaded petrol and for diesel.

The scheme was introduced in 2012 and applied only to the Inner and Outer Hebrides, Northern Isles (Orkney and Shetland), the islands in the Clyde and the Isles of Scilly. It was intended to help remote island communities that had higher fuel costs than elsewhere, for example, because of higher costs to transport fuel and low sales volumes.

In 2015, the scheme was extended to 17 other towns in Scotland and England that had similar characteristics to the original areas, such as remoteness and high cost of fuel.

Neither the rate of relief nor the areas it applies to has changed since 2015. The government has said it keeps the relief under review.

The scheme is administered by HM Revenue & Customs.  The department publish detailed guidance on its operation.