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...

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Jim Holder
03 June 2008

Chancellor's fuel tax postponement hint

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.