Chancellor George Osbourne announced in the Commons today (26 June 2012) that the planned 3p-a-litre increase in fuel duty, planned for August, will be postponed until January.

The move follows pressure from those who argued that an increase at this time would damage the economy. 

Mr Osborne said: "We are on the side of working families and businesses and this will fuel our recovery at this very difficult economic time for the world."  

The announcement has come at a time when the price of Brent Crude had fallen to little over US$90/barrel down from a high of around US$120 three months ago.  Despite this 25% fall, pump prices have remained stubbornly high leading to accusations of profiteering by oil companies.  With this background, a further 3p increase would have been inflammatory.