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14:43 GMT, Tuesday, 27 May 2008 15:43 UK

Fuel costs hit remote transport

Transport services in rural areas are feeling the effects of ever-rising fuel prices, it has been warned.

Tory MSP John Lamont said rural bus routes were in doubt, with the news of higher fuel bills forcing one Jeburgh firm to end its council contract.

In addition, Orkney Council members are due to agree a fuel surcharge of about 25p for ferry passenger tickets.

The question of petrol and diesel costs is due to be raised in a members' debate at Holyrood on Wednesday.

See how UK petrol and diesel prices have risen


On Tuesday, hundreds of lorry drivers angry at increasing fuel bills were travelling in convoy to protests in central London and along the M4 in Wales.

Hauliers believe diesel prices topping 120p a litre, plus a planned 2p fuel tax rise, will drive firms "to the wall".

Mr Lamont, MSP for Roxburgh and Berwickshire, said there would be an inevitable loss of jobs and a question mark over some rural bus routes.

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Scottish Borders Council confirmed it would have to re-tender for routes covering Jedburgh and Kelso to Edinburgh and Galashiels because the firm with the contract said money from the local authority was "unrealistic" when covering costs.

On Tuesday morning, a special meeting of Orkney Council's transport and infrastructure committee agreed to contribute 75% to the rising ferry fuel bill, but the remaining 25% would have to be paid for by passengers.

It is understood that would mean approximately 25p extra on a ticket for foot passengers, although it was not yet clear how much the rise would be for cars.

The matter will be discussed in further detail by the full council later.

In the Scottish Parliament, Western Isles MSP Alasdair Allan will propose that the UK Government should introduce a fuel tax regulator and vary fuel prices in rural and remote areas of Scotland.

His motion has received backing from his fellow SNP MSPs and a number of Liberal Democrat MSPs, including former transport minister Tavish Scott.

Mr Allan said: "The topic of every conversation in the Western Isles is the horrendous fuel costs facing island communities.

"Wednesday's debate will allow the Scottish Parliament to send a message to Gordon Brown and the UK Government that these exorbitant prices cannot be sustained."

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Related to this story:
Lorry fuel price demo hits roads (27 May 08 |  UK )
Are motorists being priced off the roads? (27 May 08 |  Have Your Say )
Fuel protests 'will cause delays' (26 May 08 |  London )
Treasury 'must end fuel tax plan' (22 May 08 |  Business )
Tories warn of car tax 'timebomb' (14 May 08 |  UK Politics )

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