Alistair Darling puts 2p petrol increase on hold - for now

Plans by the government to increase the price of petrol by 2p per litre in April have been put on hold until October, Chancellor Alistair Darling announced in his first budget.

While the news is good in the short term, the chancellor is looking to increase fuel tax by 0.5p by 2010.

The delay in the 2p per litre rise comes on the same week that petrol prices hit £5 per gallon for the first time, as a service station on the M40 is reported to be charging 110.5p per litre.

The £5 mark is equivalent to 110p per litre.