Fuel duty is to be frozen until at least the Chancellor's pre-Budget report in response to volatile oil prices, it was announced last night.
Gordon Brown had already said that the annual increase to keep pace with inflation was being deferred until September.
But Treasury Minister John Healy revealed in a written answer to MPs that the rise was now being put off further.
"The risk of oil price volatility remains high, and the Government will not therefore go ahead with the planned inflation-only increase in main road fuel duties on September 1 - and related increases for rebated oils, bio-fuels and road fuel gases."
He said the position would be reviewed again at the time of the pre-Budget report, which is expected in November or December.
The AA Motoring Trust said the announcement would provide "some good news for drivers facing a bleak summer of high petrol prices".
Ruth Bridger, a fuel price analyst, said: "Petrol prices have risen by nearly ten pence a litre since the beginning of the year - effectively another fiver on the cost of filling the average 50-litre tank.
"With the crisis in the Middle East and continued instability in other oilproducing parts of the world, this decision by the Government is the only good bit of news in a long summer of escalating car fuel prices.
The move comes after UK pump prices for unleaded petrol reached a record of 97.02p on Sunday, while diesel hit 98.93p.
The price of crude oil has hovered between $66 and $78 a barrel, driven higher by the worsening situation in Lebanon, which has raised fears about security of supply from the Middle East.
As yet there has been no reduction in supply due to the conflict.
