The Budget contained good news for motorists as the Chancellor announced that September’s 3p increase in fuel duty is cancelled.
Petrol will be 13p a litre cheaper than if he had not frozen the duty over the last two years, he said.
The widely anticipated decision comes after sustained pressure from motoring groups and backbench Tory MPs, who have argued that the high oil prices of the last few years were already making driving prohibitively expensive.
The duty on a litre of unleaded petrol or diesel will remain at 57.95p until at least September 2014.
The Chancellor had already cancelled rises due under the “fuel duty escalator” put in place by his predecessor in the previous Labour government.
The news was welcomed by motorists’ groups.
Miranda Schunke, spokesperson for Green Flag, said: “We welcome the government’s decision to cancel the planned increase in fuel duty. Household budgets are already being stretched to the limit with the spiralling cost of living.
“While the cost of motoring is a constant concern, it will be a relief to millions of motorists that there is some respite against the escalating financial burden of owning and running a car.”
Gemma Stanbury, car insurance expert at Confused.com, said scrapping the fuel duty increase was a victory for drivers.
“Fuel has already shot up in price this year which has been a blow to families trying to make ends meet and to young drivers who are being priced off the roads due to high car insurance premiums.
“The chancellor’s announcement today to scrap the proposed rise in fuel duty will be met with relief by all motorists, particularly those who rely on the roads to keep their businesses up and running.”
By Emma Lunn