Fuel duty increase is postponed
July 16, 2008
The planned 2p increase in fuel duty this October is to be postponed
This is the second time it has been postponed - it was due to be introduced in March, but was delayed for six months because of rising oil prices.
Chancellor Alistair Darling said: "The global credit crunch and sharp rise in world oil prices have pushed up prices at the pump.
"Today's decision will help motorists and businesses get through what is a difficult time for everyone."
Mr Darling's announcement came ahead of a Conservative-called debate on fuel duty set to take place in the House of Commons on Wednesday afternoon.
The RAC said: "This is welcome news but it does not go far enough. We would like to see the chancellor not just postpone future rises but actually cut fuel duty."
AA president Edmund King said: "We are delighted that the chancellor has seen common sense.
"The prospect of extra, government-inflicted pain was not something that road users were looking forward to.
"Many motorists have endured months of misery and this is a welcome piece of good news for them."
The decision was disclosed in a response to a parliamentary question tabled by a Labour backbencher.
Mr Darling said: "Postponing the planned increase in fuel duty is consistent with the government's commitment to support the Bank of England in maintaining low inflation."
It comes after a series of demonstrations by lorry drivers demanding cheaper diesel.
Earlier this month, Gordon Brown signalled that delaying the 2p rise was a distinct possibility when he said it was something he was looking at "very, very carefully".
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