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January 3p fuel duty increase is finally scrappedBack

It was announced yesterday that the 3p fuel duty rise planned for January has been scrapped.


In his annual autumn address to the commons, the Chancellor George Osbourn cancelled plans for the fuel duty rise. It was expected to be postponed until April 2013, but yesterday it was revealed that the increase had been dropped altogether.

This comes as good news to motorists who have had the threat of a fuel duty rise hanging over them since the increase was originally scheduled to take place in August this year.

The Government has said it has no plans to increase fuel prices until September 2013, and Osbourn has confirmed that the cost of petrol will not go up in line with inflation until September at the earliest.

The Chancellor also announced that a further £1 billion will be put towards improving Britain’s roads, providing further benefit for motorists. This comes after motorists and campaign groups have voiced their increasing concerns about the state of the UK roads.

Roads set to directly benefit from the £1 billion of new funding include the A30 in Cornwall, the A1 at Newcastle – which will be upgraded to motorway standard – and the M25 at Thurrock, Kent. The A5 is also planned to be linked up to the M1 motorway.

Institute of Advanced Motorists chief executive Simon Best welcomed the news, saying: “Cancelling the rise in fuel duty will help to keep Britain’s economy moving. It’s not just good news for motorists — from supermarket food deliveries to life-saving emergency services, the nation depends on its roads. This is a saving for everyone.”

The AA president Edmund King also praised the Chancellor for the fuel duty announcement, saying: ‘A near £2-a-tank hike in petrol and diesel prices would have backfired on the Government and the economy.’

He then went on to highlight the increasingly difficult situation which UK motorists have currently found themselves in, citing that in 20 years, UK motoring has cut its fuel consumption by 20 per cent (12.8 billion litres), yet it now contributes a staggering 144 per cent (£15.81 billion) more in fuel duty tax.

There could be further good news for motorists in the New Year as the Office of Fair Trading recently confirmed that it will be investigating fuel suppliers who are not passing savings on to buyers when the price of fuel falls.


Posted by Leana Kell on 06/12/2012