Financial Times FT.com

Rise in fuel duty postponed

By Jean Eaglesham, Chief Political Correspondent

Published: July 16 2008 11:05 | Last updated: July 16 2008 11:05

The government on Wednesday postponed the 2p rise in fuel duty planned for October. The six months delay is the second time the rise, initially due to take effect in March, has been postponed because of rising oil prices.

The decision to delay the 2p rise, designed as an environmental measure, followed intense lobbying of ministers by business. The move was immediately welcomed by haulage and motorists’ groups but they called on the government to go further and cut fuel duties, rather than delay the 2p increase.

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