Philippe Naughton
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Alistair Darling, the Chancellor, has bowed to massive public and political pressure and scrapped a 2p rise in fuel duty planned for this autumn.
The move emerged in a written answer to a parliamentary question and was confirmed in a Treasury statement shortly after official figures showed that the number of people claiming unemployment benefit was climbing at the fastest rate for more than 15 years.
Mr Darling announced in this year's Budget that he was deferring a long-scheduled 2p rise until October 1. With oil prices soaring - delivering a tax windfall to Government - motorists and hauliers have questioned both the need and the wisdom of a further rise in duty.
Today's move means that the planned rise has been deferred again, until at least April next year.

Mr Darling 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."
The decision to scrap the fuel duty rise came as up to 600,000 public sector workers started a 48-hour strike over pay despite Mr Darling's repeated calls for wage restraint.
In its statement, the Treasury said that main road fuel duty rates would remain at 50.35p after October 1. "This is 17 per cent lower in real terms than in 1999," it said. "Consequential, planned increases in road fuel gases, biofuel duty rates and rebated oils rates will also be postponed."
The Treasury explained that the the decision to defer the rise in duty had been taken in response to sharp rises in world commodity prices, with the price of oil almost doubling over the past year to reach a real-terms record high of $146 a barrel.
"This has inevitably had significant knock-on effects on the price of road fuels, which the Government is committed to taking into account when considering decisions on fuel duties," it said.
"Postponing the planned increase in fuel duty is also consistent with the Government’s commitment to support the Bank of England in maintaining low inflation. Future rate decisions are a matter for the Budget."
Motoring organisations welcomed the move but called for more to be done to ease the pressure on motorists. The RAC said: "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."
The Treasury says that if fuel duty had risen in line with inflation since the end of 1999 it would now be around 60p per litre. If it had risen in line with the fuel duty escalator introduced by the Tories but scrapped by Labour in 2000 it would be close to 80 pence per litre.
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The goverment have been raking it in everytime the price of oil goes up, the goverment earn more tax from Fuel.
We get the cheapest oil in Europe but are changed the highest Duty tax for it (over 45% tax + 17.5% VAT).
How do they justify this 60% Tax?
2 PENCE IS A JOKE BUT NO ONE'S LAUGHING
Andrew Towell, Hartlepool, England, UK
Petrol has passed the 1.50 mark for some time now in france ....that's about £1.20 a liter.. for unleaded 95. Raising fuel duties is only an easy way to take more money out of the peoples ' pockets...Some petrol stations sell unleaded around £1.25....and diesel @ £1.18....
pascal-Pierre, Dinan, EU(France)
intresting when petrol rises the goverment gets more VAT!
reduce the cost by 20pence!
Keith, Milton Keynes,
scraping the tax was always going to happen they just want us to think they are giving us something and they have already grabbed it back by increasing the taxes on alcohol & tobacco. no matter what they do i will never vote labour again.broken promises on the eu and the smoking ban ensure that fact
brian rice, halifax, england
As long as the price per barrel remains high US economy resists depression.
The $ is the only real export they have and that is floundering as the uptake of the euro increases worldwide.
Darling is not a politician he is a yes man.
If he had any real character he'd cut the price of fuel or cap it!
don shankley, =alfretton, UK
Any more U turns and this administration will disappear up it's own exhaust pipe.
A.Williams, Cradley Heath,
How about doing something really poitive and cutting fuel duty so that it actually reduces inflation Is it not why we have a government to be proactive and get tax down to something we can afford !!!!!!!!!!!
dave, Rotherham, UK
Fuel prices are finally making people question their reliance on the car. Brown et al have been happy to use fiscal drag on stamp duty and other taxes. Fuel tax is still less in real terms than a decade ago and Darling has just squandered the opportunity to let inaction create a passive green tax.
Nat, Cambridge,
The fuel prices in Britain are just obscene!! Labour MUST be voted out of office as they have taxed us far too much and done absolutely nothing of repute with the tax money, except to throw it away in Pakistan, Iraq and Afghanistan!! What About US who are coughing out the money???
Dr. Cahill, London, UK
He would be better advised to do something about the 64% duty and vat burden on the cost of fuel. Lower fuel costs, lower production costs and lower price increases??? That would be a radical anti-inflationary measure for a Chancellor to take. Like Phill my vote will cost more than 2p.
J Williams, Manchester, UK
USA Connecticut Diesel pump price today UK gal' ~ GB£3.04 )
Australia Northern Territory Diesel pump price UK Gal ~ GB£4.59)
My local filling station UK. Diesel UK gal' = £6.09.
Deffo RIP off Britain - Soon to be R.I.P Britain.
Pip, Bath, UK
He has not scrapped it, but postponed it, giving him the freedom to introduce it at a later date...................................
Typically stealthy.
Typically despicable.
Tim, Bristol,
Whoopy do!
To little to late. Brown and Darling haven't got a clue.
David Bridge, Southport, U.K.
I thought this was a "green tax", in the end it just turned out to be another ploy by Labour to raise revenue.
steve tea, manchester, cheshire
This 2p saving will cost the Treasury £1.1bn (institute of Fiscal Studies) - so whoop-ee-dooh indeed.
It also puts into context the demand to drop duty by about 40p - this would cost £22bn.
Thats £22bn less to spend on nurses, firemen, teachers, policemen, hospitals, roads etc.
Douglas Newell, Saltcoats, UK
darling has given me back 2p of my money, whoopee doo!
james, doncaster, uk
I love the way he claims he's helping us. He's not helping us, he's just not making things worse, there's a difference.
That's like me claiming I've helped people today by not stabbing them with a knife.
Tim, Warwick,
" road fuel duty rates would remain at 50.35p after October 1. "This is 17 per cent lower in real terms than in 1999," it said."
Naive justification considering the stratospheric oil price increase. The impact on the consumer is not just made up of the fuel duty rate Darling!
Hassan Azam, Banbury, England
This is a none story.
We all knew this would happen.
What might be a story worth reporting would be 'Darling reduces fuel duty to what it was at the beginning of the year'.
I note he has once again only been 'defered'
What an inept and ineffectual government we have.
rob, ashbourne, uk
Still the highest fuel costs amongst our competitor nations. Is this the hint to the country that the government wants more of industry to take its operations abroad.
Ian Bryan, Reading, England
Now come on chaps; let us show a little gratitude.
After all the increase would have not just been 2p........there would also have been VAT at 17.5%.
Remember, on fuel we are taxed on tax and for those who buy their own the money spent on fuel has already been taxed once as Income Tax!
Alan Hargreaves, Holywell, UK
Anyone would think there was a by-election next week...
Nick, London,
As most people have already said, the 2p is not enough.
Given that Labour have pretty much Alienated the entire populace, including their 'core' working class supporters you'd think they would try do something to garner more public favour.
Dan, Southampton,
A reasonable start. However, I want to see the Road Tax changes discarded and a cut in fuel duty before I'll even consider voting Labour again in my lifetime.
Here's hoping Nu Labour go bankrupt before I do.
Paul, London,
Feeble gesture Alistair, how about a fuel duty cut?
Postponing a duty rise, in the face of rapidly rising prices, helps nobody.
Toby Smith, Liverpool,
As if he ever was going to impose it given 30p+ rises since last year...
Now how about reducing it? And while your at it scrap these ridiculuos road tax plans.
tom, loughborough,
All about the vehicle owner and nothing at all to do with next week's By-election?
m collins, Leeds,
Hmm interesting another massive U-turn, nothing to do with the fact that actually the 2p rise pales into insignificance since prices went up from about 95p a litre when he announced the fuel duty rise to 134p a litre today. He is getting an extra 25.5p anyway. Thanks my darling - that will fool them
Duncan, Woodstock,
The treasury has been laughing all the way to the bank with the oil price rising. What we want is a cut in tax and duty on fuel, not just a scrapping of another tax increase. I'll bet he wants us to be grateful for this. The Tories seem to have the best idea.
Ian, Bristol, UK
Britain is finished - All thanks to NuLabour. I hope they are happy. Many, like me, have left for a new life under a less-Stalinist rule. I hope Brown and his cronies get what's coming to them - but I doubt it. I would happilly go back and fight if I thought we could replace them. Bet I'm not alone.
Riley, Kiev, Ukraine
My vote will cost more than 2p
Phill, The Wirral, England
so it's not been scrapped as the headline states. Instead the rise has been deferred again.
mat, bradford,