It is the second time George Osborne has scrapped the fuel duty in the last six months. The Chancellor cancelled a similar 3p rise in petrol prices – due to have taken effect in January – in his Autumn Statement in December.
Osborne was under enormous pressure to scrap the duty after official figures yesterday blamed higher prices at petrol pumps for a rise in inflation to 2.8 per cent.
Inflation has remained stubbornly above the 2 per cent inflation target of the Bank of England. And economists warning inflation could hit 3.5 per cent by the summer.
By Dividend Stocks Online:
Being frugal has been a growing trend and for good reason. Whether it be out of necessity, fear or wisdom we have certainly seen a shift into spending less in America. This trend is likely to continue for the foreseeable future.
Will the average family have anything left to spend on extras? For many, the return of the 2 percent payroll tax was enough of a setback. Now, with gas topping $4 a gallon in some areas, consumers are scrambling to pay the pump...and the rest of their bills.