In the Governments ‘Autumn Statement’, Chancellor of the Exchequer George Osborne surprised many observers when he deferred the scheduled 3p per litre rise in fuel duty due in January. He went on further to disclose plans to cancel an inflation increase due in August 2012, worth around 1.92p per litre.
Consequently, as things stand, the rise in August will now be around 3p per litre. These initiatives reduced fuel duty by 10p over the announced rises, said the Chancellor. Mr Osborne also predicted that the policy changes would make the cost of filling up the average family car cheaper by around £144 per year.
AA president Edmund King welcomed Mr Osborne’s decision: “The chancellor has seen sense on this vital issue. Cash-strapped drivers will heave a heavy duty sigh of relief as current pump prices are close to the record high,” he said.
What is clear is that although families and business alike will benefit from the scrapping of the fuel duty rise, the underlying price of Brent Crude oil is rising exponentially, something the Chancellor cannot control.
Motoring journalist and TV presenter Quentin Wilson – also involved with the campaign group ‘FairFuelUK’ – welcomed the freeze in fuel duty, but insisted the campaign would continue.
“We are delighted the chancellor has been listening, and this vindicates our long campaign and in particular the epetition. A freeze is welcome, but we still feel that the chancellor should go further and reduce duty. A cut would be less money spent filling up and more released into the wider economy.”
Sources: BBC and Guardian.
