Rise planned for October is now put off indefinitely, says Chancellor Darling It’s official: the Government will not raise fuel duty by 2p a litre this autumn. Chancellor Alistair Darling announced the increase in his Budget speech last March. The rise was due to take effect from October but yesterday he announced that it would be postponed indefinitely.
The move follows weeks of speculation that such a decision was likely as an already unpopular Government feared its opinion poll ratings would drop further if it carried out the increase.
However, the Treasury won’t lose out as a result, because increased fuel prices will generate more than enough extra tax to cover the windfall. More than half of current pump prices gs straight to the treasury in fuel duty and VAT.
Motoring groups welcomed the Government’s action. But AA president Edmund King called for the government to go further and help drivers by cutting current fuel duty levels.