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Fuel duty increase delayed

06 July 2005

An increase in fuel duty has again been delayed by the Government as an unstable oil market forces pump prices to record highs.

fuel and cash

An increase in fuel duty has again been delayed by the Government as an unstable oil market forces pump prices to record highs.

The 1.22p per litre increase, worth hundreds of millions of pounds in revenue to the Treasury, was delayed in the March Budget until this September.

However, Chancellor Gordon Brown has announced that the hike will not be applied because of continuing high prices. Instead, it will be reconsidered in the next pre-Budget report due in November.

Even without the extra increase, motorists face paying more than ever at the pumps as the price of a barrel of crude oil soars to new highs.

The AA Motoring Trust monitors average fuel prices and said that they now stand at 87.2p per litre of petrol and 91.3p per litre of diesel. The trust said a price rise of almost 8p per litre since January means UK motorists are now spending an extra £5.6 million per day on fuel.

Whatcar.com editor Iain Reid said: ‘Don’t assume that you’re getting the best deal from your local forecourt – prices vary considerably even within a small area. Even apparently small savings of 2p or 3p per litre add up over the year.

‘Supermarkets often have the cheapest fuel, so shop around and you could cut hundreds of pounds a year from your motoring bills.’

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