Fuel duty increase delayed again
July 6, 2005
The increase in UK fuel duty due in September is being postponed again, the government has announced.
Fuel duty is due to rise at least in line with inflation every year but Gordon Brown used his Budget in March to defer the rise.
Now the Treasury says it will review whether to raise the tax in the autumn pre-Budget report.
The tax was frozen last year because of "volatility in the oil market". Oil prices have since risen further.
Fuel duties have now been frozen since October 2003.
On Tuesday, John Healey, Financial Secretary to the Treasury, said: "Following sustained pressure from G8 finance ministers, OPEC (which represents most of the largest oil producing countries) have committed to increasing quotas by up to 1 million barrels a day by September.
"But in the short-term uncertainty, and the risk of price volatility, remains high, with oil trading last week at above $59 per barrel."
The freeze includes rebated oils, biofuels and road fuel gases.
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