Budget 2008: Fuel duty increase is postponed

Government plans to increase fuel duty by 2p a litre have been postponed until October.

"Fuel duty is due to rise again in April but, because I want to support the economy now and help business and families, I will postpone that increase until October," chancellor Alistair Darling commented.

AA president Edmund King said the delayed increase should "quell any panic" at the petrol pumps, claiming that an immediate increase would have been "the last straw" for many motorists and transport companies.

Mr King added that an increase in fuel duty should be scrapped altogether if petrol prices were at a similar level in October.

The Federation of Small Businesses (FSB) called for the government to scrap planned increases last month - claiming a rise in petrol costs would impact heavily on small businesses.

Haulier Rachael Pickford commented: "A couple of extra pennies on a litre of fuel in your car doesn't sound like much, but when you're talking about tens of thousands of litres it's a different story."