The planned 2p increase in fuel duty this October has been postponed.
This is the second time it has been delayed - it was due to be introduced in March, but was delayed for six months because of rising oil prices.
Chancellor Alistair Darling told the BBC: 'It's quite clear to me that oil prices, which are driving the prices at the pump, are going to remain high for some time yet.
'So I've reached the view that it's right now, before the House of Commons goes away for the summer recess, to say that we're going to postpone the increase that was due in October.
'I'll look again at the matter again in the budget, but I think that this is the right thing to do to help motorists and to help businesses.'