The Chancellor of the Exchequer, George Osborne, has confirmed that the government has scrapped the planned 3p hike in fuel duty. The tax on petrol prices would have come into force in January but instead it has now been cancelled altogether.
A fuel duty increase planned for 2013-2014 will also be deferred from April next year until September 2013, as announced in the Chancellor’s third Autumn Statement.
Fuel duty postponed
Planned fuel duty increases had already been postponed twice, originally a 5p increase was due to be introduced in January 2012 but was cut to 3p and delayed until August 2012 and in June the increase was pushed back again.
Today’s announcement will come as a relief the 85% of consumers who said they were worried about fuel prices in Which?’s latest consumer insight tracker.
Consumers can also look to save money on money on fuel by shopping around and changing the way they drive. The fuel cost guide written by Which? Car has more handy tips to save money on fuel.
The Chancellor also announced that there would be an extra £1bn investment in roads including upgrading sections of the A1 to motorway standard, upgrading the M25 motorway and making the A30 in Cornwall into a duel carriageway.
Investment in rail will also continue with further announcements about extending the HS2 high speed rail network to West Yorkshire and the north west due next year. In London, the Northern Line will be extended to Battersea power station as part of wider redevelopment in that area.
Mr Osborne also confirmed that the government will limit the average increase in regulated rail fares and Transport for London fares to the inflation (measured by the retail prices index) plus 1% for two years from January 2013, which will bene?t over a quarter of a million annual rail season ticket holders.