The government's planned fuel duty rise may be axed before April
27 January 2011

Chancellor George Osborne has said he is considering cancelling the fuel duty increase due to kick in from April.

Pressure from motorists has made the government re-evaluate the planned rise as the cost of one litre of unleaded petrol has risen to almost £1.30 due to high global oil prices and this month’s VAT increase to 20 per cent.

The planned duty hike will see fuel prices rise by another one pence but Osborne commented to the BBC that “We can override it. We are looking at that.”

With reference to the Budget, which will take place on March 23, he added: “If we are able to do something about it we will do it before April”.

Osborne also said he was also looking at the idea of a fuel stabiliser, so “the government steps in to try to protect people from the effects” of petrol price rises by cutting the level of duty.

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