Delyn MP David Hanson has welcomed the Chancellor of the Exchequers decision to postpone the 2 pence per litre increase in fuel duty that was expected to take place on 1 October 2008.
As a result of this decision, main road fuel duty rates will remain at 50.35 pence per litre after 1 October this year. This is 17 per cent lower in real terms than in 1999.
Consequential, planned increases in road fuel gases, biofuel duty rates and rebated oils rates will also be postponed.
This measure is taken in response to sharp rises in world commodity prices, with the price of oil almost doubling over the past year to reach a real-terms record high of $146 a barrel recently. This has inevitably had significant knock-on effects on the price of road fuels, which the Government is committed to taking into account when considering decisions on fuel duties.
Postponing the planned increase in fuel duty is also consistent with the Government’s commitment to support the Bank of England in maintaining low inflation.
David Hanson said:
“I am pleased that the Government has decided to postpone the increase in fuel duty. People in Flintshire are feeling the pressures of increased fuel prices and this decision will help motorists to get through what is a difficult time.”