George Osborne hints at delay to 1p rise in fuel duty

Motorists may be spared a 1p rise in fuel duty, due to be introduced in April, after George Osborne announced that the government is keen to ease the pressure of rising prices. As global oil prices push the cost of a litre of unleaded petrol to £1.30, the chancellor singled out the planned 1p increase in fuel duty announced by Alistair Darling in last year's budget. Delaying the rise would deprive the Treasury of £500m a year. Speaking during a visit to the West Midlands, Osborne told BBC WM radio that he could do "something about it" in the budget on 23 March: "We can override it, we are looking at that." The chancellor added that ministers were still examining plans for a fuel stabiliser that would protect motorists against volatile oil prices. The Treasury insisted that Osborne was not making a firm announcement, saying: "All taxes are kept under review as part of the budget process. We are not making any announcements outside the budget." It is understood that the chancellor was signalling that delaying the 1p fuel duty is the most likely option. But Vince Cable, the business secretary, was more open about the choices. Speaking at a Westminster press gallery lunch, Cable said of the stabiliser: "It could be made to work. It's difficult … There are real technical difficulties in operating such a system."