The Chancellor Alistair Darling has postponed plans to increase fuel duty by 2p/litre in the light of soaring oil prices and the global credit crunch.
Darling says: "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."
Both the Road Haulage
Association (RHA) and Freight Transport Association (FTA) have praised the decision but called for further cuts to take place.
RHA chief executive Roger King, who meets with treasury secretary Angela Eagle today, adds: "Although this 2p/litre freeze is very welcome, while world oil prices are at an all time high we believe it should be abandoned altogether, along with the increase proposed for next March and we will be telling Angela Eagle that today."
FTA director of external affairs Geoff Dossetter adds: “The scrapping of the increase at a time of high world oil prices was inevitable. However, at 50p per litre, UK diesel duty for commercial vehicles is twice the EU average of just 25p per litre.
“The Government must now engage with the industry in order to find a practical means of bringing UK duty more in line
with continental competitors. Failure to do so will only result in higher costs for UK industry and higher prices for UK consumers.”
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