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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 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 put back - 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. Alistair Darling said the move, which comes as oil prices continue to hit new peaks, would help motorists and businesses during difficult times.
"Today's decision will help motorists and businesses get through what is a difficult time for everyone." The price of unleaded petrol has risen 25% over the past year and pressure has been mounting for duty to be cut.
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. 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 miseryMonths 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."
Many motorists have endured months of misery and this is a welcome piece of good news for them Edmund KingAA 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.
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." "The global credit crunch and sharp rise in world oil prices have pushed up prices at the pump.
It comes as oil prices have nearly doubled over the past year and lorry drivers have mounted a series of demonstrations demanding cheaper diesel. "Today's decision will help motorists and businesses get through what is a difficult time for everyone."
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. 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%.
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".