1p fuel duty cut already wiped out

The 1p cut in fuel duty announced by Chancellor George Osborne in his Budget has already been wiped out by rocketing global oil prices, according to a motoring body.

The RAC said the latest petrol price figures show that the average cost of a litre is now 133.55p - 0.02p higher when compared with the average price on March 23 when the duty cut was announced.

RAC motoring strategist Adrian Tink said: "The volatile oil market has meant that drivers have seen very little benefit from the duty cut. Prices are continuing to spiral upwards with no end in sight to the high prices.

"The Chancellor made a great deal about the 'Fair Fuel Stabiliser' but it's only stabilising Government revenue. Motorists are still going to be hit by the rising cost of fuel.

"And just to add to the pain, the delayed inflationary increase of 3.02p is due to come in on January 1. Who knows what the price of fuel will be at this point?"

Copyright © Press Association 2011