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Fuel duty increase is postponed | Fuel duty increase is postponed |
(10 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 put back - it was due to be introduced in March, but was delayed for six months because of rising oil prices. | |
Alistair Darling said the move, which comes as oil prices continue to hit new peaks, would help motorists and businesses during difficult times. | |
The price of unleaded petrol has risen 25% over the past year and pressure has been mounting for duty to be cut. | |
The chancellor'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 | 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 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." | 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." |
There's absolutely no reason why the chancellor should have been stampeded into making this decision and we have no indication how it's going to be paid for Vincent CableLiberal Democrats | |
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". | 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". |
Today's decision will help motorists and businesses get through what is a difficult time for everyone Alistair DarlingChancellor | |
But Lib Dem treasury spokesman Vincent Cable said: "There's absolutely no reason why the chancellor should have been stampeded into making this decision and we have no indication how it's going to be paid for." | |
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. |
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. | |
"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." | |
It follows a series of demonstrations by lorry drivers demanding cheaper diesel. Figures show petrol prices have risen nearly a quarter during the past year, and diesel 36%. | |
AA figures suggest the cost of a litre of unleaded petrol averaged 119.5p across the UK on Tuesday, with diesel averaging out at 133p. | |
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". |