A 2p rise in fuel duty due in October has been postponed by Chancellor Alistair Darling.

With petrol prices standing at an average 119.5p across the UK, Mr Darling said the move would help motorists and businesses "get through what is a difficult time for everyone".

Mr Darling and Prime Minister Gordon Brown had previously given heavy hints that the increase would be shelved amid soaring oil prices.

However, the Treasury had insisted that no final decision would be taken until closer to the time.

Shadow chancellor George Osborne said: "After months of dithering, Alistair Darling has finally decided to postpone the 2p rise in fuel duty a week before the Glasgow East by-election.

"Instead of short-term political fixes, what the Government should be doing is adopting our plans for a fair fuel stabiliser so that motorists get automatic relief when the price of oil goes up, rather than relying on the political whims of the Chancellor.

"Now under pressure, he's U-turned on one of his car tax measures; surely it can't be long before he shows his weakness again and backs down on the VED rise on family cars."

Motoring organisations welcomed the move but called for more to be done to ease the pressure on motorists.

The RAC said: "This is welcome news but it does not go far enough. We would like to see the Chancellor not just postpone future rises but actually cut fuel duty."

AA president Edmund King said: "We are delighted that the Chancellor has seen common sense. The prospect of extra, Government-inflicted pain was not something that road users were looking forward to.

"Many motorists have endured months of misery and this is a welcome piece of good news for them."

Soaring oil prices mean it has taken around five weeks for petrol and diesel prices at the forecourt to rise 2p per litre to current levels.

Figures show petrol prices have risen nearly a quarter during the past year and diesel 36 per cent.

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