Fuel prices are likely to remain volatile during the spring, so the Chancellor Gordon Brown’s decision to freeze fuel duty levels until September is a wise one – especially with a general election on the horizon – according to Ray Holloway, director of the Petrol Retailer’s Association, commenting on last month’s Budget.

In the Budget, the Chancellor announced that fuel duty levels would be unchanged. He plans to review the situation in September. “The Chancellor has donned velvet gloves for this Budget,” said Holloway. “But regardless of who wins in May, there will be a post-general election budget, and then all bets will be off.”

Meanwhile Tom Fidell, director general of the LPG Association, believes the government demonstrated its long-term commitment to LPG in the Budget. “In an endorsement of the environmental advantages, especially air quality in urban areas, the chancellor announced a continuation of the existing differential arrangement in the fuel duty between LPG and petrol/diesel through to 2008.

“This means that the price of LPG at the pumps will continue at around half the price of petrol and diesel for the foreseeable future.”