However, there was no mention of a three pence per litre reduction, as recently called for by industry lobbying group, The Freight Transport Association.
The news was welcomed by Green Flag, with spokesperson Miranda Schunke commenting: 'We welcome the Government’s decision to cancel the planned increase in fuel duty. Household budgets are already being stretched to the limit with the spiralling cost of living. While the cost of motoring is a constant concern, it will be a relief to millions of motorists that there is some respite against the escalating financial burden of owning and running a car.'
However, the AA said that it welcomed the news with relief rather than joy, highlighting that the latest fuel price swing, through February and March 2013, peaked at 140p a litre. Had January’s scheduled 3p rise in fuel duty gone ahead, attracting an additional 0.6p in VAT, it would have propelled the UK average petrol price well beyond the current record price of 142.48p.
Edmund King, AA president, said: 'A September a fuel duty hike would have been the last straw likely to break UK drivers’ budgets and would have led to a summer of discontent. The freeze is a pragmatic move and will bring some relief at the pumps. Already 76% of AA members are cutting back on journeys, household expenditure or both, due to the high cost of fuel.
'With current fuel prices at 138.42 for petrol and 145.24 for diesel, drivers will welcome the scrapping of the fuel duty hike with relief rather than with joy. Prices are almost 5p a litre higher than when the Chancellor froze fuel duty in March 2011.'
Meanwhile, Chris Chandler, principal consultant at Lex Autolease, said: ‘Scrapping the planned rise in fuel duty is welcome news for businesses, many of which rely on a fleet of vehicles to trade, and help keep Britain’s economy moving.
‘However, managing costs will continue to be a significant challenge for fleet managers, who should not forget the importance of fuel efficiency and monitoring driver behaviour.’
And Stuart Kerr, CEO of Ford Retail, highlighted how fuel-efficient engines can still play a key role here, commenting: 'The news that the fuel duty rise has been cancelled will be welcomed by families and commercial drivers alike but prices remain high, and we expect fuel efficiency to remain at the top of motorists’ shopping lists. New technologies such as our EcoBoost engine can help keep families on the road.'