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.
Months of misery
The Tories are proposing a "fair fuel duty stabiliser" which would lower the levy when the cost of fuel goes up and increase it when it drops.
The RAC welcomed Mr Darling's announcement, but said: "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."
Kate Gibbs, of the Road Haulage Association, said anything that helped the road haulage industry was "good news" although the postponement of the fuel duty rise represented "quite a small drop in the ocean".
The decision was disclosed in a response to a parliamentary question tabled by a Labour backbencher.
Hints
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 as oil prices have nearly doubled over the past year and lorry drivers have mounted a series of demonstrations demanding cheaper diesel.
The AA said the cost of a litre of unleaded petrol averaged at 119.5p across the UK on Tuesday, with diesel averaging out at 133p.
Figures show petrol prices have risen nearly a quarter during the past year, and diesel 36%.
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".
Story from BBC NEWS:
http://news.bbc.co.uk/1/hi/uk_politics/7509156.stm
Published: 2008/07/16 10:04:04 GMT
© BBC MMVIII
Thankyou Chancellor
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.
Months of misery
The Tories are proposing a "fair fuel duty stabiliser" which would lower the levy when the cost of fuel goes up and increase it when it drops.
The RAC welcomed Mr Darling's announcement, but said: "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."
Kate Gibbs, of the Road Haulage Association, said anything that helped the road haulage industry was "good news" although the postponement of the fuel duty rise represented "quite a small drop in the ocean".
The decision was disclosed in a response to a parliamentary question tabled by a Labour backbencher.
Hints
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 as oil prices have nearly doubled over the past year and lorry drivers have mounted a series of demonstrations demanding cheaper diesel.
The AA said the cost of a litre of unleaded petrol averaged at 119.5p across the UK on Tuesday, with diesel averaging out at 133p.
Figures show petrol prices have risen nearly a quarter during the past year, and diesel 36%.
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".
Story from BBC NEWS:
http://news.bbc.co.uk/1/hi/uk_politics/7509156.stm
Published: 2008/07/16 10:04:04 GMT
© BBC MMVIII
Thankyou Chancellor
