Chancellor George Osborne has scrapped August's planned 3p rise in fuel duty and frozen the tax for the rest of the year.
The £500 million boost to motorists can be paid as a result of departmental savings across Whitehall, the Treasury said.
Announcing the measure to cheers from Tory benches in the Commons, Mr Osborne said fuel duty would now be 10p a litre lower than under the plans inherited from Labour.
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