Swinney calls for fuel duty regulator

Image caption, Unleaded petrol cost more than 拢1.40 a litre in some remote communities

Finance Secretary John Swinney has written to the UK Chancellor calling on him to tackle rising fuel prices.

In a letter to George Osborne, Mr Swinney urged the UK government to set up a fuel duty regulator.

It would mean a reduction in duty at times of high oil prices - matching the extra revenue from VAT generated by higher pump prices.

Mr Swinney said it was unacceptable that "energy-rich Scotland" should have areas facing prices of 拢1.40 per litre.

He said: "Coupled with the UK government's recent VAT rise, these record fuel costs are putting a huge and unnecessary amount of pressure on our communities and on vital sectors of the Scottish economy, and risk choking the recovery we are building in Scotland.

"With a further rise in duty scheduled for April, Westminster must take urgent action to tackle this."

Mr Swinney said North Sea oil revenues would see the UK government collect about 拢12bn in tax this year, which could be used to introduce the relief.

He added: "We also believe a discount on fuel duty should be levied in Scotland's rural and island communities - two areas hardest hit by rising fuel prices."

Danny Alexander, the chief secretary to the Treasury, said the UK government was looking into a proposed "fair fuel stabiliser".

He told the 大象传媒's Politics Show: "We recognise that this for many families is a serious issue.

"We are seeking to address that problem by looking at this idea of a fair fuel stabiliser, by taking steps to relieve the burden of fuel costs in the most remote communities."