Chancellor George Osborne announced yesterday that the planned 3p rise for fuel duty that was due to be applied in August has been postponed.
Campaigners have been fighting for the cancellation of any fuel duty increasing throughout the year since it was announced in March as part of the Governments budget. Motorists were faced with a year of hikes in fuel costs because of the planned 3p increase.
The chancellor has now confirmed fuel duty will now be 10p a litre lower than what it would have been if the planned increase went ahead. Cancellation of the increase will be a welcomed break for motorists who have struggled over recent months with ongoing hikes in fuel. At its highest price this year it cost over £100 to fill up the tank of a family sized car.
The announcement came after Britain was named as the highest paying motorists for fuel duty within the EU. However in the last month UK motorists have seen a drop in fuel prices to a reasonable 1.25 per litre for petrol and 1.30 per litre for diesel, which is lower than it has been in recent months.
Challinor George Osborne made the announcement in the House of Commons yesterday saying: “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.”
Ian Donaldson Managing Director of Autonet Insurance commented: “The cancellation of the planned 3p increase will be good news for motorists who have witnessed incredible hikes in the cost of fuel over recent months. The Government will see how this cancellation will benefit families and businesses in the UK.”
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By Amanda Bainbridge