Government postpones increase on fuel duty

Employers have gained a brief respite from increasing fleet costs after Chancellor, Alistair Darling, announced that the planned 2p increase in fuel duty is to be postponed.

The increase, which was due to come into effect on 1 October, has now been postponed until next spring. Main fuel duty rates will remain at 50.35p a litre after 1 October. Planned increases for road fuel gases, bio-fuel duty rates and rebated oil rates will also be postponed.

Darling said: “The global credit crunch and sharp rises in world oil prices have pushed up prices at the pump. [This] decision will help motorists and businesses get through what is a difficult time for everyone.”