Latest Government U-turn sees planned increase in fuel duty put back until next year.
Chancellor George Osborne has announced that the planned fuel duty rise has been delayed until January 2013.
The Government had planned to add 3p to fuel duty in August. However, it has now decided to delay this tax rise, in order to help with the cost of living.
Wholesale oil prices have fallen significantly this year, by around 20%. But that fall has not been particularly well represented in the price we pay at the pump.
According to figures from the Department of Energy & Climate Change, the average price of a litre of unleaded petrol currently stands at 131.6p, having hit a new record high of 142.17p back in April. The average price of a litre of diesel is currently 137.20p, having hit a whopping 148.04p two months ago.
The move follows the outbreak of a price war on fuel between the nation's major supermarkets. Asda, Sainsbury's, Tesco and Morrisons have all either cut the price they charge at the pump or launched money-off vouchers should you spend above a certain amount in the store (for example, 6p off a litre with Morrisons, so long as you spend £40 in-store first).
The easiest way to cut your petrol spend is to shop around for the cheapest prices in your area using petrolprices.com. You can also check out some of the tips in Cut your petrol costs by a third.
The fuel duty decision is just the latest post-Budget U-turn from the Government, following backtracks on VAT on pasties and static caravans, as well as dumping planned tax changes to charitable giving and church improvements.
What do you think? Is the Government right to ditch this planned tax rise? Is it enough to help struggling families?