January 3p fuel rise cancelled

  • Chancellor George Osborne postpones plans for increase
  • Decision is a major boost for car and van drivers in the UK
  • Fuel price rise will now come in August 2012 instead

The planned 3p fuel rise, set for January 2012, has been delayed by the Chancellor in his autumn statement.

At a time of rising insurance premiums and high fuel prices, any delay in further increases for car owners comes as a big relief. The 3p rise will instead come in August 2012, with the planned 2p inflation increase due for August cancelled.

All this means, that along with the cut that occurred in the budget earlier in the year, fuel prices are now 10p per litre lower than was originally planned.

This latest move by George Osborne is a big boost for motorists, who are already paying, on average, 133.06p per litre for petrol and 141.29p per litre for diesel. In some parts of the country petrol prices are as high as 148.9p per litre while the top cost for diesel is 155.9p per litre.

Plans for the 3p increase caused outrage among both motorist and backbench MPs. More than 100,000 UK drivers signed a petition calling for the rise to be delayed, while more than 100 MPs signed a motion calling for the rise to be ditched and replaced with a stabiliser to steady fluctuations in fuel prices.

Based on the current average price of diesel of 141.39p per litre, a 55-litre tank of diesel currently costs around £77.76p to fill up. Had the planned rises gone ahead this would have gone up to £79.41p, meaning car owners will save £1.65 per tank of fuel.

However, the problem is that delaying the rise means the money that would have been made on fuel will have to be found elsewhere. This means that while your car costs may steady, or even fall, you could be hit elsewhere.

As well as the plans on fuel, the chancellor also revealed that the government will be spending up £1bn to tackle road congestion and improve road networks. This will include improvements for the A14 in the East of the country as well as scheme for larger motorway networks like the M1 and M6.

Also motorists using the Humber Bridge near Hull will save on toll fares with the cost being cut by 50%. Currently the charge is £3.00 so with the reduction it will be £1.50.

Parkers Top Tip:

If you’re looking to save money by driving your car more efficiently, then check out the Parkers guide to cutting your fuel costs.