The Government's policy is that fuel duty rates should rise each year at least in line with inflation as the UK seeks to reduce polluting emissions and fund public services.

Therefore, main road fuel duty rates will rise by 1.84p per litre on April 1, 2009, and rates will then also increase by 0.5p per litre above indexation on April 1, 2010.

However, the Chancellor confirmed that the planned fuel duty increase of 2p per litre in April 2008 will now take place on October 1, 2008.

The Government can also confirm that rebated oils duty increases will also be deferred until 1 October 2008, when they will rise in proportion to main road fuel duties.

These rates will also rise by the same proportion as main road fuel duties in the subsequent two years.