Chancellor George Osborne has announced that fuel duty will be frozen for the rest of the year.
The Government had been expected to add 3p per litre to the cost of fuel in August, but Mr Osborne has confirmed that plan has been cancelled.
Birminghampost.net reported this morning that Labour had called for the rise to be scrapped amid tough economic times.
Shadow chancellor Ed Balls warned that the increase would only worsen the recession squeeze and urged the Government to postpone it until at least January.
He said the delay could be funded by closing tax loopholes and using the £500 million underspend from the Olympics budget.