Chancellor George Osborne announced yesterday that the planned fuel duty increase for January has been axed.
Throughout 2012 the cost of fuel has been a problem for motorists when prices have continued to rise.
The Chancellor announced the axe of the 3p planned increase altogether in the Autumn Statement. Motorists will welcome the cancellation of the rise which has been planned throughout the year despite it being cancelled in August. It will give motorists a much needed financial break after insurance and household costs have increased.
Motoring groups are also pleased with the axe after campaigning to the Government to stop any fuel duty increase happening. The AA in particular has put forward their views and findings in a bid to prove to the Government that motorists don’t need another rise.
The cancelled fuel duty is estimated to prevent a £2.50 a week increase to fill up an average sized vehicle which will be a relief to motorists.
The AA found in their popular poll that 73% of drivers have cut back on spending and journeys because of the high cost of fuel. A study has also proved that motorists have listened to the Governments advice and purchase fuel efficient vehicles.
George Osborne spoke about the cancellation of increase saying: “That is real help with the cost of living for families as they fill up their cars across the country.
“It means that under this government we will have had no increase in petrol taxes for nearly two-and-a-half years.”
Ian Donaldson Managing Director of Autonet Insurance said: “Motorists will welcome the cancellation of the 3p increase after months of paying high fuel costs.
“The Government will see how this announcement will benefit businesses and families across the UK.”