2p fuel hike on hold

The two-pence fuel duty increase due to come into effect next month has been postponed, BBC News reports.

If true, the decision is likely to be welcomed by business groups, who have been lobbying the chancellor to reconsider the planned hike in the face of rising fuel costs.

Yesterday, the Road Haulage Association (RHA) issued a "last-ditch plea" to Mr Darling, in which they estimated that the 2p duty increase would cost heavy goods vehicle operators £3,000 per year per vehicle.

"It makes no sense to increase the UK's transport costs at a time when these are playing an increasingly significant role in putting UK businesses at risk," said RHA chief executive Roger King.

"If the chancellor believes that another rise in fuel duty sends out an environmental message, he is grievously mistaken. Hard-pressed hauliers are having difficulty financing their fuel costs, never mind being in a position to buy new trucks and to embrace technology changes designed to make their logistical operations more efficient."

The BBC reports that the rise, originally due for 1 April, will be postponed for six months. It quotes Friends of the Earth's Simon Bullock as having said: "Abandoning plans to increase fuel duty will seriously undermine the government's green credentials."