Fuel duty increase to be scrapped?

* Chancellor hints rise could be axed * Increase would be a penny per litre * Duty stabiliser also being considered...

Fuel duty increase to be scrapped?

Chancellor George Osborne is considering axing the planned increase in fuel duty due this spring.

In an interview with BBC Radio WM, Osborne said: 'We can override it. We are looking at that.'

The increase of a penny per litre is due in April and would be in addition to inflationary increases of around twice that amount due at the same time.

Osborne also said that a fuel duty stabiliser, in which the tax was linked to the price of crude oil, was still being considered, but gave no details. In fact, he may not reveal a decision until the Budget on March 23.