The Chancellor has today confirmed that the Government will delay the fuel duty rise scheduled for August 1 until January 1, 2013.

The Treasury estimates that prices will be 10 pence a litre cheaper than if the Government had not abolished the pre-existing fuel duty escalator. A spokesman said that as a result of repeated action to support motorists, fuel duty will not have increased for two successive years and the average family with a car will be £159 better off overall than they otherwise would have been. Hauliers will on average by £4,900 better off.

The Chancellor  George Osborne said: “This Government has done more to support to motorists than any other. We cut fuel duty last year, and avoided two year’s worth of rises planned by the previous Government. This comes on top of freezing council tax and putting money back in millions of taxpayers’ pockets through raising the personal allowance.

“Today’s decision is the right action to help, families, businesses and the broader economy.”

Chief Secretary to the Treasury Danny Alexander said: “This is good news for motorists, families and business. Coming on top of previous reductions it will provide a welcome boost at a time when people are under real financial pressure.”

The cost of today’s action on fuel duty will be met in a fiscally neutral way, from reduced expenditure through savings in Departmental spending. More details will be announced by the Chancellor at the Autumn Statement.