If you live in one of the more isolated regions of the UK, you could begin to pay less to fill up your vehicle from this Sunday, when a new rural fuel subsidy officially comes into effect.

As we previously reported, the subsidy was ratified by the European Union back in March, but becomes law on 31st May. From this point, petrol and diesel in a selection of outlying areas will be reduced by five pence per litre. Retailers in the areas will be able to reclaim this reduction in fuel duty from the government.

There has already been a similar scheme in place since 2012 in the Hebrides and various other British islands, according to a report in The Financial Times. The new scheme extends to slightly less remote parts of Britain, including certain parts of The Scottish Highlands, Cumbria, Yorkshire and Devon, covering 17 postcode regions in all.

The FT report estimates around 125,000 drivers will benefit from the scheme. Unfortunately however, its launch is in the wake of a long period of successive fuel price increases, so will only go some way to redressing the balance. Due to the extra work involved in transporting fuel to these rural areas, there can often be price disparities that amount to up to TEN pence per litre compared with urban areas. Still, at least the new subsidy will provide some relief.

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