He commented: 'There was speculation that the Chancellor could reverse the increase of fuel prices from 1 April, however it was largely expected that he would stand by his initial decision.

'The fact that the Chancellor has decided to go ahead with the increase will ultimately protect revenue streams and help Britain take steps towards making up its deficit, whilst spreading the increase over a 10-month period will give businesses a little extra time to recover from the recession.

'Spreading the increase will lessen the impact on voters, and this makes it a good decision politically. It will also give the chancellor the opportunity to review the staged increase in October and January in line with oil prices and economic recovery.

'There has been much discussion of tax stabilisers being introduced in order to combat the fluctuations in oil/ fuel prices, and come October or January this may be the route that the chancellor decides to take, however whilst the Government slows the increase in fuel duty, this may not be necessary.

'As it stands, the planned increase of 1 pence due in April 2014 means that the Exchequer has an increased revenue planned in, but will give Britain financial respite in the medium term.'