The Chancellor announced a freeze in the fuel duty for ‘the remainder of this Parliament’. The anticipated increase in September 2014 of 1.61 pence per litre was therefore cancelled.
The Chancellor went on to announce that on the cost saving will amount to the average motorist by 2015-16 saving £11 every time they fill their tank - a saving of £680 for a typical motorist.
He also highlighted that ‘by the end of the parliament average pump prices will be 20 pence per litre lower than pre 2010'.
This is another measure to help small business with the average potential saving for a small business, with a van being estimated at £1,300 and for a haulier business estimated at £21,000 by 2015-16.
Other fuel duty announcements maintain the differential between lower road fuel duty on gases (compressed natural gas, liquid natural gas and biomethane) and the main fuel duty rate until March 2014.
The differential between the main fuel duty rate and the rate for liquefied petroleum gas will reduce by 1% each year until 2024.
The government will also seek European Union approval to apply a reduced fuel duty rate for methanol.