Chancellor Alistair Darling is expected to delay an increase in fuel duty that was due to come into effect on April 1 for six months, it has been revealed.
The 2p rise, announced in last year’s Budget, will be postponed because of soaring crude oil prices, according to the BBC.
Fuel inflation is the highest since records began in January 1997, according to the Office of National Statistics.
The price of petrol has risen by almost a fifth in the past year.
The Freight Transport Association (FTA) has described such a move as logical and sensible at a time when the price of oil has reached $110 per barrel and pump prices for UK diesel are at around 115p per litre, while bulk diesel prices are 92p per litre and rising.
FTA director of external affairs Geoff Dossetter said: "We have campaigned hard to persuade the Chancellor that he should hold off his planned increase, which would cost industry £280 million over a full year. If the Chancellor is to delay the increase for six months, then the £140m saving will be welcome.
"The FTA continues to seek a decoupling of the way in which commercial vehicles are taxed from private cars."
AA president Edmund King added the Budget would be the “2p or not 2p Budget”.
He added: “Fuel price instability is damaging to people and the economy and while this is largely influenced by the market, we believe the government can do more to help people and business weather the financial damage and uncertainty high prices cause.”
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