Campaigners and drivers have applauded Chancellor George Osborne's decision to axe the planned rise in fuel duty by 3p per litre in August.
Members of Parliament said road users throughout England would welcome the move.
RAC Foundation director Professor Stephen Glaister said it is good news for motorists as well as the nation.
He added: "Given that tax makes up around 60% of the pump price, falls in the price of oil were only ever going to go so far in easing the financial burden on motorists.
"Road transport powers the nation's economy and it is welcome that the Chancellor recognises the huge pressures the country's 35 million drivers are under with transport being the biggest single area of household expenditure bar none."
Number 10 said the "quad" - which involves Prime Minister David Cameron, Deputy Prime Minister Nick Clegg, Mr Osborne and Treasury Chief Secretary Danny Alexander - first discussed the plans at a meeting some four weeks ago.
But it defended Mr Osborne's decision not to tell other ministers, saying "tax is a matter for the Chancellor".
Copyright Press Association 2012