Prime Minister Theresa May has confirmed fuel duty will be frozen for the ninth year in a row.
She made the announcement during her speech at the Conservative Party Conference in Birmingham, adding it will put “money in the pockets of hard-working people”.
Fuel duty is a tax paid on most fuels and currently stands at 57.95p per litre of petrol, diesel, biodiesel and bioethanol. VAT of 20% is also charged on most fuels.
Chancellor Philip Hammond had previously said it would cost the Treasury £38 billion if the freeze continued for another three years.
The Institution for Fiscal Studies estimates keeping fuel duty unchanged since 2010/11 now costs the Treasury around £9 billion per year.
Mrs May said: “Today I can confirm, given the high oil price, the Chancellor will freeze fuel duty once again in his budget later this month. money in the pockets of hard-working people. A Conservative Government that is on their side.”
Robert Jenrick MP, Exchequer Secretary to the Treasury added the Conservative Party has helped the average motorist save £850 and van driver £2,100 since 2010 by freezing fuel duty.
The move has, however, been criticised the Green Party.
Caroline Lucas MP said: “I can think of much better things to spend £800m on than freezing fuel duty.
“How about a boost for our broken bus network? How about improvements to our railways? How about investment in making our streets safe for cyclists? We need decent public transport, not petrol subsidies.”