New 'fuel discount' for motorists

The Government is looking at a new fuel discount scheme for motorists in remote areas, it has emerged.

Treasury chief secretary Danny Alexander said that people in faraway areas who depend heavily on their vehicles could get a respite from surging fuel prices as the Government considers introducing a discount programme.

Prime Minister David Cameron is under great pressure to launch a "fuel stabiliser" - the idea of maintaining an inversely proportional relation between fuel tax and oil prices that he had championed during his election campaign.

While the PM said the Government was considering the proposal, Mr Alexander admitted the plan was not easy.

He said: "We as a Government are looking at the idea of the fair fuel stabiliser, as the Prime Minister has been saying.

"It's a complicated idea and it's difficult to see precisely how we achieve it but it's something that we are looking at very carefully to see if we can reduce the burden of fuel duty.

"We are already also taking steps, and we are the first Government that's done this, to put in place a fuel duty discount scheme for remote communities where the prices are absolutely highest, something previous governments refused to do."

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