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Fuel duty increase is postponed | Fuel duty increase is postponed |
(30 minutes later) | |
The planned 2p increase in fuel duty this October is to be postponed. | 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. | 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. | 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." | "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. | 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." | |
Many motorists have endured months of misery and this is a welcome piece of good news for them Edmund KingAA | Many motorists have endured months of misery and this is a welcome piece of good news for them Edmund KingAA |
AA president Edmund King said: "We are delighted that the chancellor has seen common sense. | 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. | "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." | "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. | 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." | 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". | 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". |