Motorists welcome fuel duty freeze but fear post-election tax hikes following new report

With tumbling oil prices already prompting falling prices at the pumps, road users were given a double boost after the Chancellor confirmed the pre-announced freeze for April 2015.

It means the tax on fuel will continue to remain at the same level, 57.95 pence per litre, since 2011 when Mr Osborne cut the levy by 1p.

"Despite falling fuel prices let me make this clear: we've cut fuel duty and we will keep it frozen," Mr Osborne told the House of Commons.

However, today also saw renewed fears of fuel duty hikes after next May's general election.

A report by the Office for Budget Responsibility (OBR) spoke of a duty rise in September 2015, as well as a rise in line with RPI inflation in each April from 2016 to 2019.

The OBR report said: "Fuel duty revenues in each year between 2011-12 and 2015-16 are below their 2010-11 level, thanks in part to the reduction in the duty rate in April 2011 and subsequent duty freezes.

"The next duty rate rise, planned for September 2015, means that receipts are expected to increase by 0.3 per cent in 2015-16.

"From April 2016 onwards duty rate rises are assumed to be in line with RPI inflation, leading to receipts growth of 2.5 per cent on average between 2016-17 and 2019-20."

AA president Edmund King welcomed the coming April's freeze, but said the OBR report appeared to confirm the view of 84 per cent of AA members in a recent poll who said they were concerned that motoring taxes would increase from next year.

He said: "Today's re-confirmation of a £15 billion investment in UK roads and the continuing fuel duty freeze puts drivers on a 'highway to hope' after some hellish years of high fuel prices, potholed roads and only patchy investment.

"But our members were right to be sceptical about future taxes."

Fellow motoring groups were disappointed the Chancellor didn't go further to put more money in drivers' pockets, despite April's freeze.

Fair Fuel UK pointed out fuel duty was now approaching 70 per cent of pump prices, with no sign of a Government-ordered pricing enquiry.

Motoring journalist Quentin Willson, the Fair Fuel UK's lead campaigner, said: "We welcome the continual freeze in fuel duty but the Chancellor's tax take is now approaching 70 per cent. He could have done more."

The Road Haulage Association posted on Twitter: "A fuel duty freeze. Better than an increase - for hauliers a cut would have made a REAL difference."

It was also announced in the Autumn Statement that the Government would press ahead with plans to introduce signs on motorways which display the price of fuel at service stations, to help promote competition and lower fuel prices.

The Department for Transport will begin work early next year on trialling a new fuel-comparison sign at five service stations on the M5 between Bristol and Exeter, with a view to introducing the signs by the end of 2015.

Transport Minister Robert Goodwill said: "For too long drivers have been ripped off by petrol prices on motorways."

Howard Cox. founder of the FairFuelUK Campaign said: "The FairFuelUK Campaign welcomes the continual freeze in Fuel Duty by the Chancellor in today's Autumn Statement but his tax take is now approaching 70%. 

"He could have done more. He knows along with the IMF that cutting fuel prices is good for GDP, new jobs and Inflation. 

"He also did not call for our Oil Price Enquiry supported by Treasury Minister Priti Patel to investigate why the recent massive fall in oil prices have not been reflected similarly at the pumps in terms of the right amount and timing. 

"Marks out of 10 is 6. Could do better"