The scheme will allow 125,000 people living the selected areas, who currently face some of the highest fuel prices in the country despite depending on cars for transport, to benefit from cheaper fuel.

The UK’s most rural islands already receive this discount, but it will be the first time ever that the Commission has approved a fuel discount in on the mainland in the UK.

Commission approval means that the issue is now awaiting agreement from other member states through the Council of the European Union.

Danny Alexander, Chief Secretary to the Treasury, said: ‘This is great news for motorists in these areas and brings a duty discount a step closer. Even though fuel prices are falling across the country, they are still higher in very rural areas. As someone who comes from one of the most rural areas in the UK, I know that for people who live in these areas cars are a necessity, not a luxury. I’ve fought hard to reach this major milestone.’

RAC fuel spokesman Simon Williams added: ‘This announcement is a landmark moment for mainland rural communities which are the last to benefit from the record low fuel prices now widespread across much of the UK. Filling stations provide a crucial public service in more remote areas, and the plans to widen the Rural Fuel Rebate Scheme will help reduce prices closer to those enjoyed in other parts of the UK. ‘People living and running businesses in rural communities by their nature rely most heavily on their vehicle, so it’s right that they should not have to pay significantly more for fuel. At the same time, we would caution that rural motorists will probably never see fuel cost parity with urban areas. This is due to higher delivery costs and the fact that motorists in towns and cities tend to benefit from intense competition between supermarket and larger independent fuel retailers, who sell greater volumes. ‘We now look to the other European member states to rapidly approve the scheme so that motorists can benefit from cheaper fuel without delay.’

To use the Fleet World CO2 and Fuel Consumption Calculator web tool to find the cars with the lowest fuel costs, click here.