The government is to suspend a planned increase in fuel duty, Chancellor Alistair Darling said Wednesday, following protests by truck drivers and outrage from motorists' organisations over pump prices.

The 2p rise was due to take effect in October but has now been postponed amid soaring world oil prices which hit peaks above 147 dollars last week.

“The global credit crunch and sharp rises in world oil prices have pushed up prices at the pumps,” Darling said, announcing the move in a parliamentary written answer.

“Today's decision will help motorists and businesses get through what is a difficult time for everyone.”

Truckers have this year held several protests over high fuel prices, which they say threaten to put them out of business, bringing gridlock to London.

Motorists' group the Automobile Association says the average price of diesel in Britain is 133 pence per litre — the most expensive out of 24 European Union countries monitored. Tax accounts for over 50 percent of that price.

AA president Edmund King welcomed Darling's announcement, saying: “”We are delighted that the Chancellor has seen common sense.

“The prospect of extra, government-inflicted pain was not something that road users were looking forward to.”

Darling had already pushed back the 2p fuel duty rise from April to October.

The move is the latest about-face by Darling.

One of the most embarrassing U-turns came in May, when Darling announced a near three billion pound handout to poorer families hit by the abolition of the 10p starter tax band.

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