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Osborne's fuel duty Ice Age continues

Despite being odds on to rise, fuel duty will remain frozen for the sixth consecutive year, George Osborne confirmed in his Budget statement.

In what came as a welcome surprise to motorists, the tax on petrol and diesel remains at 57.95p per litre despite plans buried deep in last year's Treasury documents alluding to an increase in-line with inflation.

But motoring industry experts suggested drivers shouldn't celebrate too soon: some warned fuel costs could still increase in the near future, with two supermarkets already swelling forecourt prices in response to recovering oil values.

The Chancellor, buoyant in his commitment to extending the freeze at 57.95p per litre, said fuel duty was 'the tax that keeps Britons on the move' when he addressed the Commons on Wednesday afternoon.

With faltering oil prices ushering fuel to six-year lows since the turn of the new year, some saw the nation's drivers as a soft target for a tax hike.

But, after acknowledging the lower cost of fuel in recent months, the Chancellor said motorists wouldn't be targeted just because oil prices had nosedived.

24 March 2016

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