George Osborne: Fuel duty rise delayed until January

Osborne (right) says the decision will help families with the cost of living.

"We are on the side of working families and businesses and this will fuel our recovery at this very difficult economic time for the world", he says.

Earlier this morning, shadow chancellor Ed Balls urged the Government to use the £500 million underspend from the Olympics to cover the cost of scrapping a 3p increase in fuel duty due to take effect in August.

In a further boost for drivers, supermarket giants Asda, Morrisons, Sainsbury's and Tesco all cut up to 2p per litre off both petrol and diesel prices from today.

But the cuts don't necessarily mean these retailers will be cheapest. You can use the PetrolPrices.com website to find the lowest cost in your area.

However, pump prices remain a concern.

Yesterday's average price of unleaded petrol was 132.10p per litre, while diesel was 137.46p per litre, according to PetrolPrices.com.