Sarah is our insurance specialist, reporting the latest important developments in the industry.
Chancellor George Osborne has announced plans to scrap the 3 pence per litre price rise in fuel duty which was due to begin from August.
This is welcome news for motorists as the summer holidays could have become even more expensive. The government has eased the cost of motoring for UK drivers just as the summer holiday season kicks into top gear.
Fuel duty will be frozen until a review in January 2013. This marks the second year of fuel duty freezes and knocks £2.10 off the cost of filling up the typical family car.
The move to push up fuel duty prices was announced in the 2012 Budget earlier this year. However, the decision to scrap fuel duty increases means that motorists will be slightly better off.
Mr Osborne told MPs at the House of Commons earlier this week: "We will stop any rise in fuel duty this August, and freeze it for the rest of the year.”
The chancellor claims that fuel duty will be 10 pence per litre lower than under the inherited labour government, stating: "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.”
"Last year we cut fuel duty and froze it. This year we have frozen it again. You should welcome that,” the chancellor continued.
The high price of fuel in Europe combined with the fuel duty freeze might temp motorists to stay in the UK for their summer break.
This is a welcome relief to drivers planning on holidaying in the UK this summer. Those looking to cut costs on their motoring might want to consider comparing car hire insurance prices to ensure they get the best deal.
Compare car hire and car hire excess insurance with MoneyMaxim.