Fuel duty increase is postponed

In the face of record prices on the forecourt, demonstrations by hauliers and fears of rising inflation the government is to postpone the planned tuppence increase in fuel duty in October – the second time in a row that a such a planned increase has been delayed.

A spokesperson for the Environmental Transport Association said: “The high price of oil is effectively doing the job of fuel duty and any increase in tax at present would have been seen as grasping.”

“It’s essential that green taxes are seen as fair – with no reduction in the price of oil in sight, the government has done the right thing by delaying the increase.”

The Treasury announced that main road fuel duty rates would remain at 50.35p and planned increases in road fuel gases, biofuel duty rates and rebated oils rates will also be postponed.

There is speculation that the retrospective element of increases in vehicle excise duty (road tax) planned to take effect next year will be withdrawn later this year.

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The ETA is a not-for-profit ethical organisation providing motorists and cyclists with carbon-neutral breakdown cover and insurance products. As well as encouraging responsible driving to reduce carbon, the ETA campaigns for sustainable transport.