AA: Rise in fuel duty 'would have cast a shadow over the Olympics'

British motoring association AA's president Edmund King has welcomed news that plans to increase fuel duty have been scrapped this year.

Mr King said that had the plan gone ahead, it would have siphoned £1.6 million a day from consumer spending into the pump and knocked out a third of price cuts:

This is great news for all motorists as drivers will breathe an enormous sigh of relief with summer holidays about to take off.

A duty increase at the same time as the Olympics would have cast a shadow over the UK.

What we now need more than ever is fuel price transparency to make absolutely sure these benefits are passed on to drivers in their entirety.

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Fuel duty increase cancelled

The Chancellor has scrapped August's planned 3p rise in fuel duty and frozen the tax for the rest of this year. The £550m cost of the change will be paid for by departmental savings across Whitehall.