Chancellor postpones fuel duty rise

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The government has postponed the planned 3.02p-per-litre rise in fuel duty on 1 August until 1 January next year as a result of “repeated action to support motorists”.

The Chancellor surprised MPs with the announcement as he took departmental questions yesterday. This follows the Autumn Statement last year when the government said the proposed increase would be deferred until 1 August 2012.

Osborne said: “We will stop any rise in fuel duty this August, and freeze it for the rest of the year. We are on the side of working families and businesses and this will fuel our recovery at this very difficult economic time for the world.”

HM Treasury said the delay means that pump prices will be 10p-a-litre cheaper than if the government had not abolished the pre-existing fuel duty escalator.

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About Robert Lovell

Business and finance journalist


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    27th Jun 2012 12:24

    felt sorry for Chloe Smith last night...

    she got a complete mauling from Paxman on newsnight over the U turn....not pleasant viewing....GO should have shown some balls and faced up....

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    27th Jun 2012 14:45

    Yes, I don't have a great deal of time

    for Osborne. Seems keen to appear that he's doing everyone a favour when, in reality, he won't even know what the true price of fuel really is. Same goes for pasties and static caravans, I imagine!

    Aren't we blessed?

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    28th Jun 2012 09:40

    method in his madness

    With global oil and therefore (eventually) petrol prices, falling and the coalition desperate to show growth at some time this year this will fit the bill nicely. Watch the announcement about return to growth later in the year.

    Poor Chloe must be fuming about not being told though..

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    28th Jun 2012 10:00

    The trouble with (most)

    politicians is, they've forgotten the difference between truth and fantasy. Paxman simply asked, "when did you know" (about the change in policy)? Hardly wrong footing journalism?

    It (fuel duty surcharge climbdown) is clearly an Osborne decision and, as such, he should have been forced to face the media. However, the more I hear of the "actions" of The Chancellor, the more I feel that this recession will be with us, for at least another 5 years. The policies of the "Keystone Cop" will live with us all, for a very long time. And, no, I don't see a political alternative.

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    By dstickl
    28th Jun 2012 17:16

    Paxo clearly forgot the rule that "Parliament has 2 B 1st 2 B ..

    IMHO, Paxo - and most of the other distinguished commentators - clearly forgot the HoC Speaker's rule (as part of our deceptive so-called "unwritten" democratic constitution) that "Parliament has to be the first to be informed of significant Government activity", a rule that seemed to me to be honoured more in the breach thereof under the previous loopy/rotten Labour Government!

    What surprises me is that Chloe did not slap Paxo firmly down on this point!  And if she'd wanted to take a more elevated tax ground, I'd naturally support Chloe to have asked this question: "Are you subject to IR35, Mr Paxman, and have you paid your 'deemed payments', and if not, why not, Mr Paxman, please?"  UKIP anyone?

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    29th Jun 2012 13:39

    This will save the average motorist £25, betweeen now and the next duty rise, Im going to have a chineese take away tonight on the back if this, thanks a lot , glad i voted conservative now.

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    29th Jun 2012 16:49

    Admitting mistakes and rectifying

    It's a shame to see the press treating every change of plan as if it's the biggest disaster for the Government since the titanic.

    At least this lot are big enough to stand up and say when they are wrong and change direction, and they should be applauded for it not vilified.

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    02nd Jul 2012 11:01

    yep good that they listen...

    just a shame that didn't do a little more research and save the trouble of telling us what they want to do and then reversing it....(would no doubt save not only a lot of time but also money)



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