Petrol tax hike shelved

A 2p tax rise on petrol due to come in to force in October has been shelved, the Government said today.

A 2p tax rise on petrol due to come in to force in October has been shelved, the Government said today.

Chancellor Alistair Darling said he was postponing the increase to “help motorists and businesses get through what is a difficult

time for everyone.”

“Postponing the planned increase in fuel duty is consistent with the Government's commitment to support the Bank of England in maintaining low inflation,” he said.


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“The global credit crunch and sharp rises in world oil prices have pushed up prices at the pumps.

“Today's decision will help motorists and businesses get through what is a difficult time for everyone.''

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It is the second time the hike has been put off, after originally being pencilled in for April.

Motorists organisations have backed the move but called for bolder moves.

“This is welcome news but it does not go far enough. We would like to see the Chancellor not just postpone future rises but actually cut fuel duty,” said an RAC spokesman.

According to the AA, the average cost of unleaded petrol across the UK currently stands at 119.5p a litre, or 133p for diesel.

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