Labour’s Chancellor Alistair Darling has postponed a 2p rise in fuel duty.

As a result of this decision, main road fuel duty rates will remain at 50.35 pence per litre after 1 October this year.

This is 17 per cent lower in real terms than in 1999.
Britain is facing challenging times from the global economic conditions, but Labour are taking action now to help ease the pain for hard-working families.

Alistair Darling said:

"The global credit crunch and sharp rises in world oil prices have pushed up prices at the pump. Today's decision will help motorists and businesses get through what is a difficult time for everyone."

This measure is taken in response to sharp rises in world commodity prices, with the price of oil almost doubling over the past year to reach a real-terms record high of 6 a barrel recently. This has inevitably had significant knock-on effects on the price of road fuels, which the Labour Government is committed to taking into account when considering decisions on fuel duties.

Postponing the planned increase in fuel duty is also consistent with Labour’s commitment to support the Bank of England in maintaining low inflation.

By contrast, if Labour had continued the Tory policy of a fuel escalator, fuel duty would be around 80p per litre – not 50p – and petrol would cost an extra 34p per litre today, including VAT.