RESIDENTS across 17 of the UK's most rural areas will see road fuel prices reduced from 31 May.

Treasury chief secretary Danny Alexander confirmed the 5p per litre fuel price cut on Thursday (5 March).

     See also: Rural fuel price cut is 'one step nearer'

The scheme will mean cheaper petrol and diesel for 125,000 rural people currently facing some of the country's highest road fuel prices.

The Rural Fuel Rebate was approved by the European Union (EU) following a year-long approval process, having received EU Commission approval in January.

It is the first time that Brussels has approved a fuel discount on the UK mainland, although the UK's most rural islands already receive the discount.

Mr Alexander said the discount would provide a much-needed boost for families.

"Thanks to my action in government, motorists across some of the UK's most remote rural areas will now benefit from a fuel discount," he said.

"I have made introducing the Rural Fuel Rebate a top priority because I know from my own experience that cars are a necessity, not a luxury, for people living in remote communities."

The 17 areas are:

IV54 (Highland – Scotland)
IV26 (Highland – Scotland)
IV27 (Highland – Scotland)
NE48 (Northumberland – England)
PH41 (Highland – Scotland)
KW12 (Highland – Scotland)
PA80 (Argyll and Bute – Scotland)
PH36 (Highland – Scotland)
IV22 (Highland – Scotland)
PA38 (Argyll and Bute – Scotland)
PH23 (Highland – Scotland)
PH19 (Highland – Scotland)
IV21 (Highland – Scotland)
LA17 (Cumbria – England)
EX35 (Devon – England)
IV14 (Highland – Scotland)
Hawes (North Yorkshire – England)

Retailers in the 17 areas will be able to register for the scheme from 1 April.

They will be eligible to register with HMRC and claim back a 5 pence per litre duty relief on purchases of unleaded petrol and diesel for retail sale within the eligible areas.

Retailers will be entitled to claim the relief from HMRC on a monthly basis.

The 17 areas have been selected using the following criteria:
* Pump Price Threshold: Pump prices have to be more expensive than the lowest pump price on the islands in the existing scheme
* Cost of Transporting Fuel: Areas have to be over 100 miles by road from the nearest refinery
* Population Density: The population density must be no higher than any area in the current scheme
Areas that did not fulfil the criteria were excluded from the application, as the government considered them to be unlikely to receive EU approval.
The existing rural fuel rebate scheme came into effect in March 2012.
It covers the Inner and Outer Hebrides, the Northern Isles, the Islands of the Clyde and the Isles of Scilly.