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The chancellor has confirmed that the planned 2p increase in fuel duty is to be postponed.
The annual rise in petrol tax had already been postponed from March until October this year and was widely expected to be scrapped due to the massive hike in oil prices in the past few months.
And Alistair Darling announced on Wednesday that this year's rise would again be put off in order to ease the burden on motorists' and businesses.
"The global credit crunch and sharp rise in world oil prices have pushed up prices at the pump," the chancellor said in a statement.
"Today's decision will help motorists and businesses get through what is a difficult time for everyone."
Speaking at prime minister's questions in the Commons on Wednesday, Gordon Brown promised that "we will continue to help hard-pressed families who are facing rising fuel bills".
He said the government was providing assistance through the winter fuel payment and other measures, as well the freeze in petrol duty.
And he added that: "We will bring forward further measures to help families in due course."
However Conservative leader David Cameron questioned whether the timing of the announcement had been influenced by the Glasgow East by-election later this month.
But Brown said "it is right to announce this decision before the House rises" for the summer recess next week.
Liberal Democrat Treasury spokesman Vince Cable earlier also raised concerns that the decision could leave the public finances short of essential cash during the economic downturn.
Dods Parliamentary Communications Ltd