Fuel duty rise scrapped

Chancellor Alistair Darling has scrapped the duty increases on rebated oils, diesel and petrol due to take effect on 1 October. As a result the main road fuel duty rates will remain at 50.35p per litre which the Treasury said is 17% lower in real terms than in 1999.

He said: "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."

While welcoming the announcement which it said will save UK industry £280m per year, the Freight Transport Association said the move “must be only the first step in a major review of commercial vehicle taxation." It said the 50p per litre duty on UK diesel is still twice the EU average.