Fuel duty will remain frozen for the seventh successive year in 2017, saving drivers £130 a year on average and the average van driver £350 a year, compared to pre-2010 fuel duty escalator plans.

Fuel duty will remain frozen for the seventh successive year in 2017

Announced during the Autumn Statement, the tax cut is worth £850m next year and means the current fuel duty freeze is the longest for 40 years, according to Chancellor Philip Hammond.

RAC fuel spokesman Simon Williams said: “The Chancellor’s commitment to freeze fuel duty will be greeted with relief by motorists and businesses at a time when we know drivers are concerned that fuel prices will rise significantly over the next six months – which might be the case if oil-producing countries that are members of OPEC commit to an oil production cut when they meet this time next week.

“The Chancellor’s decision to extend the freeze shows that he understands that motorists are the backbone of the British economy. It is vital that in such uncertain times, the Government can give as much certainty to them as possible.”