The chancellor has scrapped the planned 3p per litre rise in fuel duty in his autumn statement.
Mr Osborne revealed in his statement earlier today that the planned increase in fuel duty would not go ahead in January as planned. The chancellor had already postponed the planned tax hike, announcing in June that the rise due in August would be put off until January 2013.
The price hike would have seen the annual fuel bill for a family car rise by around £80.
The chancellor has also announced £5bn of Whitehall cuts to fund investment in roads and transport.
The move was welcomed by motoring pressure groups. IAM (Institute of Advanced Motorists) chief executive Simon Best said: "Cancelling the rise in fuel duty will help to keep Britain's economy moving. It's not just good news for motorists -- from supermarket food deliveries to life-saving emergency services, the nation depends on its roads."
Quentin Willson of FairFuelUK welcomed the move, saying: "The cancellation of the 3p rise completely is a welcome surprise, it would have cost 35,000 jobs and hit growth. Fantastic News but the fight for fairer fuel pricing goes on for the sake of hard pressed businesses, the public and to stimulate growth in the economy."
