‘Abuse of fuel duty derogation will not be tolerated’ – Carmichael

Northern Isles MP Alistair Carmichael has warned that abuse of the Government’s fuel price reduction scheme will not be tolerated.

Under the government’s scheme, a 5p per litre duty derogation will come into force tomorrow, Thursday, March 1, across the isles.

Mr Carmichael was speaking after reports that the price of fuel in the Northern Isles had increased in recent weeks as a result of additional charges from wholesalers.

According to Mr Carmichael, data from the AA’s fuel price report shows that the average price of petrol in Scotland increased by 1.2 p per litre between November 2011 and February 2012. Mr Carmichael has been told of one garage in Shetland that has seen its petrol price rise by five pence per litre over the past two weeks.

The duty derogation, which is the largest of its kind in the EU, will see the duty payable on fuel bought at the pumps in the Northern Isles fall by 5p per litre.

Mr Carmichael said: “‘If these reports are correct then I think some explanation is in order. This scheme is of supreme importance to the Northern Isles and no one should be allowed to undermine it. There must be a reasonable explanation for the price rises. If so, then let us hear it.

‘The fundamental principle here is very straightforward. We now have a situation where public money is being used to lower the price of fuel. Public money comes with public accountability and the wholesalers need to be transparent about why motorists are being asked to pay more.”