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Howard Cox from campaign group Fair Fuel UK said the rural fuel discount scheme would be unworkable
A fuel discount scheme in place in the Scottish islands and the Isles of Scilly could be extended to 10 rural towns in mainland Scotland and England.
The UK has applied to the European Commission (EC) for a 5p a litre reduction in fuel duty in those towns.
The Scottish towns are Acharacle, Achnasheen, Appin, Carrbridge, Dalwhinnie, Gairloch and Strathpeffer.
Kirkby-in-Furness in Cumbria, Hawes in North Yorkshire and Lynton in Devon are also included.
Chief Secretary to the Treasury Danny Alexander said that, as a Highlander, he knew "all too well that fuel prices tend to be highest in areas where a car is needed the most".
"We've already delivered a tax cut for remote islands and now want to extend that to mainland rural areas that suffer from similarly high prices to the islands," he added.
"We have put together the strongest possible evidence base to try and maximise the places that get it."
The UK most now secure approval for the expanded scheme from the EC, which is expected to announce its decision next year.
"As I've said before, it won't be easy to get this agreed with the commission, but I will do everything I can to make this happen," Mr Alexander added.
The 10 towns selected for the application have higher pump prices than in locations that already receive discount, are more than 100 miles by road from the nearest refinery and have a population density lower than 135 people per square km.
Introduced in March 2012, the discount currently applies to the Hebrides, Northern Isles, islands in the Clyde and the Isles of Scilly as well as other island communities in Europe.
Retailers register with HM Revenue and Customs to claim 5p a litre relief on fuel for sale to the public.
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