Tuesday March 11, 08:18 AM
UK's Darling set to postpone 2p rise in fuel tax - report
LONDON (Thomson Financial) - Alistair Darling, the UK Chancellor of the Exchequer, is ready to postpone a 2p rise in fuel duty when he reveals the 2008 budget tomorrow, the Telegraph reported, citing well-placed sources.
They said both the Treasury and No 10 were 'minded' to delay the rise until the autumn, bearing in mind motorists' consternation over rising petrol prices and the increasing cost of living in general, the Telegraph said.
Darling believes more sophisticated environmental taxes, such as those that target inefficient vehicles, are more likely to encourage environmentally friendly behaviour, the paper said.
The move would come amid a renewed spike in the price of crude oil, which hit a new record yesterday above 107 usd in New York. The average cost of a litre of unleaded petrol in the UK is now more than 105p, the Telegraph said.
The 2p rise in fuel duty was announced at last year's budget by the then-Chancellor, and current prime minster, Gordon Brown.
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