Motorists in remote areas could pay less for petrol and diesel under Government proposals to extend the island fuel rebate scheme, Chief Secretary to the Treasury Danny Alexander said yesterday.

Petrol stations and other fuel retailers in remote areas in Britain including North Yorkshire have been asked to let the Government know how much they charge for petrol and diesel so ministers can seek permission from the European Commission to extend the discount scheme.

Currently, islanders off Scotland and in the Isles of Scilly get a 5p discount on petrol and diesel because of transport costs.