Fuel duty could be frozen for next two years

Chancellor George Osborne has claimed that the Government could freeze fuel duty until the end of parliament in 2015. However, Osborne said that this is only possible if savings could be found elsewhere to pay for it.

The announcement came at the Conservative party conference, with Osborne explaining in his address: “Provided we can find the savings to pay for it, I want to freeze fuel duty for the rest of this parliament.”

The lastest surprise move follows more than four years of fuel duty freezes. And any attempt slow the increase in fuel prices would be well received by motorists, who currently face average petrol costs of £1.33 per litre and average diesel prices up to £1.40 per litre.

But despite the move appearing to appease drivers, the AA and RAC have warned that more needs to be done and that the Government is already getting large sums of money through motorists.

Professor Stephen Glaister, director of the RAC Foundation, said: "Transport is the single biggest area of household expenditure bar none and our own research shows that 800,000 of the poorest households are in transport poverty, spending a quarter or more of their income on running a car.”

And AA president Edmund King explained: “This is not exactly a give-away as even with a duty freeze the Chancellor is still raking in approximately 60% of the pump price in duty and VAT."