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.
About Robert Lovell
Business and finance journalist