The planned increase in petrol prices that were set for January 2012 has been cancelled by the Chancellor George Osborne.
He announced yesterday as part of the Autumn Statement that the 3p fuel increase will be cancelled but the 5p increase for August will stay but has been reduced to 3p.
As a result of the action taken in Autumns Statement taxes on petrol will be 10p lower in August 2012 compared to what they would have been if the increase had happened.
Bringing in the cancelled plans is set to save motorists who fill up an average size car £144 by the end of next year. .
The news will come as a relief to motorists who have seen the cost of running a car increase significantly over recent months.
AA president Edmund King said: “The Chancellor has seen sense on this vital issue, cash-strapped drivers will have a heavy duty sigh of relief as current pump prices are close to the record high.
“This measure will not only be a relief to drivers but also to the high street as drivers have less to spend if more money is pumped into their tanks.
“It is still tough on the streets for many drivers but at least the Chancellor hasn't added to their pain, as the AA has been saying he understands that cars are a necessity and not a luxury.”
For many a car is used to get to work and or take children to school, if petrol prices increased people would have find other ways of transport if they can no longer afford to run a car.
The cancelled plan will be a break from the ongoing price increase that has been happening constantly over recent years, it has gone from 76.9p in 2000 to 1.34p to date.
Earlier this year it was predicted that if petrol prices increased grocery spending would go down to make money available for filling up a car.
A few weeks ago MP Robert Halfon spoke of the problems that will be caused by increasing prices for motorists which lead him to launch an e-petition against the Government to cancel the planned increased.
It seems as though the petition from Halfon worked with 124,354 signatures all signing against petrol prices, the petition will remain open until August 2012.
Our article Petrol price petition set to cause a stir was written a few weeks ago highlighting Robert Halfon’s plan to stop the increase.
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By Amanda Bainbridge