Chancellor George Osborne may have gone up in the popularity stakes among motorists following his announcement yesterday.  The plans to increase fuel duty in January 2012 have been scrapped, for now.

Instead, the rise will now happen in August next year, replacing the inflation rise worth around 5p per litre.

Mid November, news came out that the average motorist was facing an extra £1.50 more per tank of fuel purchased. The announcement had created such a stir, that the Government were presented with a 100k signature strong petition opposing the increase.

And it looks like the petition did the trick, next year, motorists will only have to find an extra 3 pence per litre instead of 8 pence.

Motoring groups who had grave concerns about the planned rises, claiming it would further damage the economy as petrol prices were reaching record highs, will no doubt be celebrating this small victory.

Edmund King, President of the AA, comments, “The Chancellor has seen sense on this vital issue. Cash-strapped drivers will heave a heavy-duty sigh of relief as current pump prices are close to the record high. This measure will not only be a relief to drivers but also to the high street as drivers have less to spend if more money is pumped into their tanks.  It is still tough on the streets for many drivers but at least the Chancellor hasn’t added to their pain”.

King concludes, “As the AA has been saying he understands that cars are a necessity and not a luxury”.

Stephen Glaister from the RAC foundation echoes these sentiments, “This is good news. Figures out today, show transport is the single biggest area of expense for the average household with £1 out of every £8 going on motoring”.

The announcement was also welcomed by The Freight Transport Association, and RMI Petrol.