Fuel duty has been cut by 1p per litre in UK Chancellor George Osbourne's Budget, announced today, 23 March. The new pricing structure will come into effect 6pm GMT this evening - so hang on until then if you have to fill your car.
In addition, the previously planned inflation rise for Fuel Duty has been postponed until April 2012, while the former government's 1p per litre above inflation "fuel escalator" has been scrapped, until 2015 at least. It's a move by the coalition to appease car owners and haulage firms who have been complaining that the rising costs of fuel have been crippling their businesses in the last couple of years.
The £2bn budgetary shortfall that this will cause will be made up with extra taxation on North Sea oil firms.
Whether these cuts will have a knock-on effect in the prices of gadgets and other forms of tech remains to be seen, after all, it will now be cheaper to transport them throughout the country. Our guess is that the customer will see no benefit, although it is hoped that the lower fuel prices will see a rise in car sales.
At the other end of the scale, the government is to find £2bn of extra funding for the Green Investment Bank, its scheme to help businesses raise the finance for clean energy projects, which starts in 2012.
What do you think? Will the lowering of Fuel Duty convince you to buy a new car? Let us know your thoughts in the comments below...
Picture by Rama.