Chancellor's fuel tax postponement hint

  • Darling admits 2p rise could be delayed
  • Chancellor is monitoring prices
  • Rising fuel prices net £1.1 billion tax boost
Another day, another hint - Chancellor of the Exchequer Alistair Darling has given his clearest signal yet that he will drop October's planned 2p-a-litre fuel duty increase.

The Chancellor is under mounting pressure to stem the rising cost of motoring, with unleaded petrol prices at an average of 116.1p a litre and diesel at 129.4p a litre.

Darling said: 'I'm very aware that people are facing an increasing burden every time they fill up their car's tank. There is an increase due in October. I will look at that closer to the time and if I judge it right, I am prepared to postpone that increase.'

Figures compiled by accountants Grant Thornton suggest that in the 81 days since the March Budget, rising oil prices have generated £1.1 billion in taxes for the Government.

This is made up of £900 million from taxes on North Sea oil companies and £200 million from pump-based taxes.
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