Call to protect rural Scots from fuel hike 04 | 01 | 2011

AS PETROL AND DIESEL prices continue to rise across Scotland in the wake of the VAT increase, there have been renewed calls for the government at Westminster to include rural areas of Scotland in a pilot project to reduce fuel prices.

With VAT having increased from 17.5% to 20% at midnight, allied to the increase in fuel duty from January 1, it's estimated the two rises would add about 3.5p to a litre of petrol and diesel.

In remote areas of Scotland, pump prices are even higher, with fuel now costing £1.45 a litre or more in some parts. Across the rest of Scotland, the average price of a litre of unleaded stands at £1.24, while diesel costs, on average, £1.28 a litre. Twelve months ago, the average price of a litre of petrol was 107.74p, while diesel was 109.46p

Today Western Isles MP, the SNP's Angus MacNeil, said people in the Highlands and Islands would be hardest hit by the price rises.

"Before the election there was talk of a fair fuel regulator, which would mean when there were spikes in oil prices the duty would go down," MacNeil said. "We've seen none of that yet, so in 2011 I'm calling for the government to honour their promises.

"The last time fuel prices were as high as this many people came to me, worried about their commute to work and what it might mean for their jobs, their take-home pay and disposable income. So this is going to start to bite and to bite quite hard."

Meanwhile, a Scottish government spokesman described the VAT hike as "damaging to consumers and the wider economy", and said the Scottish Parliament should have responsibility for such powers.

Chancellor George Osborne though has argued the increase is needed to cut the UK's deficit.

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Jim McGill