Chancellor Scraps Tax Increase on Fuel Prices!

The Chancellor George Osborne has recently announced within his Autumn statement that the planned 3p per litre fuel duty rise has been scrapped. He announced the change of plans in a speech stating that the U turn would be a “real help” for families and businesses at such a difficult time of year.

"The tax take from fuel duty is pretty healthy and would be even better were it not for record fuel prices," he said.

Osborne ditched the increase which was originally planned to take place in January due to the increased pressures on UK motorists. UK motorists already pay a record amount of tax on petrol, as they pay 81p per litre which is the highest across Europe.

The UK will remain at the position of eighth in the petrol price rankings within Europe which is was guaranteed to move up if the tax increase was to take place.

On the other hand both bus and rail fare prices are in the increase and if the tax increase was to take place it could have led to a inevitable backlash in terms of voting for the chancellor and his party.

The Chancellor also announced the £1 billion spending plans on UK roads including the popular route of the A1 from between Newcastle and London.

The UK's leading supermarkets have recently gone to war on the price of fuel within the UK to entice motorists to not only purchase fuel from themselves but their day to day shopping as well.

All four supreme supermarkets in Tesco, Asda, Sainsbury's and Morrisons have recently announced price cuts of 2p per litre on diesel and petrol. The motorists will feel the benefit of a decrease in prices from the supermarket and the complete scrap of a tax increase by the government.

As we are in a double dip recession, the importance of continual petrol prices is paramount to the growth of the economy as motorists and the distribution of products rely and depend on fuel prices.