The government has postponed the planned increase in fuel duty.

The UK Government announced today, 16 July, that the planned 2p fuel duty increase, scheduled for 1 October, has been postponed in light of the credit crunch and rising oil prices, which have seen record highs of US$146 (about £73) a barrel.

This is the second time this year that such an increase has been deferred; a similar increase was postponed by the government in March.

UK Chancellor, Alistair Darling MP, commented: “The global credit crunch and sharp rises 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."

Fuel duty rates will now remain at 50.35 pence per litre after 1 October 2008 – 17% lower in real terms than in 1999.