The chancellor, Alistair Darling has announced that he is postponing the 2p per litre increase in fuel duty that was due to come into force on October 1.
As a result of this decision, main road fuel duty rates will remain at 50.35p per litre.
The treasury were keen to point out that fuel duty rates are 17% lower in real terms than in 1999.
Increases in road fuel gases, biofuel duty rates and rebated oils rates will also be postponed.
Mr Darling said: "The global credit crunch and sharp rises in world oil prices have pushed up prices at the pump.
"The decision will help motorists and businesses get through what is a difficult time for everyone."
"Postponing the planned increase in fuel duty is also consistent with the Government's commitment to support the Bank of England in maintaining low inflation."