A temporary freeze on fuel prices has been announced by supermarket Morrisons as the Government raises duty by 2p a litre.
With VAT pushing the actual increase up to 2.3p, the company has pledged to maintain existing prices until September 6.
It is currently charging 103.7p for unleaded petrol and 103.9p for diesel. Says chief executive Marc Bolland: "By paying the duty increase we are demonstrating our commitment to delivering the strongest value for all our customers."
At the beginning of the year, petrol was 85p a litre. But with world oil prices also likely to increase, it is feared that petrol prices might soon rise to 110p a litre.
This would mean drivers paying an average £60 a year more for their petrol.