Budget 2013: The planned 3% rise in fuel duty has been scrapped.
In the 2013 Budget, Chancellor George Osborne announced the government would cancel the 1.89 pence per litre increase, which was due to come in effect on 1 September 2013, because of the impact negative impact high pump prices have on the cost of living.
The government has introduced a fair fuel stabilizer (FFS), which ensures that when oil prices are high, fuel duty will increase by no more than inflation. Under the FFS, fuel duty would only increase by inflation in 2013.
The government estimates that its actions on fuel duty will have eased the burden on motorists by £21.5 billion over the Parliament to 2015-16.
Alex Jackman, head of policy at the Forum of Private Business, said: “The Chancellor was absolutely spot on with this. No one wants to see fuel prices any higher than they are and small businesses will welcome that.
“Let’s not forget though that prices are fast approaching record highs. Any increase would have been reckless so this was just basic common sense.”