Reduction in Fuel Duty for Remote Parts of The UK - March 2011

This regularly updated section of the HomeApproved web site will cover the latest trends, research, opinion and developments in the UK car insurance sector. 

Fuel Duty Cut For Remote Isles but Not Rural Britain
Before we inform our readers on the subject of this month's news feature, we can provide an update on an article which we featured last month.

In February we asked the question 'were lower premiums for women drivers in the UK a thing of the past?' Well, we can now answer that question thanks to a ruling from the EU. This past week the European Court of Justice (ECJ) has effectively banned gender being used as a risk factor in all forms of insurance. What this actually means is that in all probability motor premiums for women drivers will rise from December 2012 by an average of 25% and correspondingly premiums for (young) male drivers will fall.

Moving onto the subject for this month we can report that motorists on Scottish islands and the Isles of Scilly are set for a 5p cut in fuel duty under new Government plans.

Danny Alexander, the Chief Secretary to the Treasury, is to ask the EU to give Britain permission to offer a discount to drivers who face higher pump prices than motorists on the mainland. Latest reports suggest that the price per litre of fuel in these remote isles is nearing £1.40 and could even climb to an astonishing £1.50 per litre!

Whilst this is a sensible idea from the coalition government it has raised the question from motoring organisations why other drivers in rural areas across the UK are not justified in asking for similar relief? Edmund King, President of The AA has said "We would like to see the Chancellor act to relieve the burden of spiralling fuel prices for all drivers across the UK".

Ex Top Gear Presenter Quentin Wilson has chipped in "This doesn't even scratch the surface of the fuel price crisis threatening to decimate the economy". Since the announcement by Mr Alexander this debate looks set to grow and grow. We will endeavour to keep our readers up to speed.

ENDS