Fuel concession for island motorists - Telegraph.co.uk

"These are places, more than anywhere in the country, feeling the pressure of high fuel prices," he said.

"The pressure is huge on families in these areas, and I'm delighted to be part of the Government that, for the first time ever, is going to deliver that help to hard-hit families."

Subject to EU approval, the discount is expected to come into force at the end of the year, it emerged.

Pump prices are higher on the islands than the rest of Britain. At Kirkwall, on the Orkney Islands, motorists are paying around 141.9 pence a litre for unleaded and 146.9 pence for diesel, compared with the average British price of 130.9 pence and 136.43 respectively.

The Government is still facing mounting pressure to introduce a fuel stabiliser, which was promised by the Conservatives before the last election.

Designed to provide motorists with some protection by cutting tax as the cost of oil rose on the world markets – especially with the Treasury cashing in on soaring receipts from companies operating in the North Sea.

There was little sign of this pressure easing following Mr Alexander's announcement."This doesn't even scratch the surface of the fuel price crisis now threatening to decimate the economy," said Quentin Willson of the FairFuelUK

"It will help a very few people in only the remotest parts of the UK. It doesn't even help the vast rural communities in other parts of the country."

Angela Eagle, Mr Alexander's Labour shadow, accused him of reheating an old announcement to deflect from the Liberal Democrats' humiliation in the Barnsley by-election.

"It will do nothing to help millions of drivers across the whole of the UK facing record high prices at the pumps," she said.

"Danny Alexander and George Osborne could and should act now to help motorists in every part of the UK.

"They could immediately reverse their VAT rise on petrol, which has added £1.35 to the cost of filling up a 50 litre tank, and ease the pressure on families across the country right now."

"Danny Alexander needs to explain to his constituents, and the small number of people in remote areas of Scotland who could benefit from such a scheme, why it has taken him eight months since suggesting it in last year's Budget to even get around to submitting this application to the European Commission."