Fuel duty will be frozen, the Chancellor announced in today's Budget.
Rishi Sunak confirmed the policy after nine years of freezes in a row under the Tories.
Rumours had swirled before Budget day that Mr Sunak would finally end the freeze - which has kept fuel duty at 57.95p per litre for petrol and diesel since 2011.
Last year's freeze alone will cost the Treasury more than £4billion over five years, and the government had wanted to burnish its green credentials.
But the move prompted Tory fury - with MPs demanding the freeze continue.
Campaigning MP Robert Halfon warned millions who "lent" their support to Boris Johnson in December could flip back to Labour in the "shortest political loan in history".
He wrote before the Budget: "If the Government were to raise fuel duty, they would be flashing multiple V-Signs to voters up and down the country."
It comes days after experts said petrol prices could fall by as much as 17p a litre to £1.06 as a result of the crash in the price of crude oil.
Asda said yesterday it would cut the price of fuel by 2p a litre for both unleaded petrol and diesel. Morrisons soon joined them in cutting prices, with a 2p cut of its own taking effect today.
Dehenna Davison, who became the MP for Bishop Auckland in December, welcomed the announcement, saying: “It’s fantastic to see the Government back working people with another fuel duty freeze. Blue collar voters in Bishop Auckland and beyond can see today from the Budget that Boris and the Conservative Party are on their side, repaying their trust by delivering for them and their families.”
However Mr Sunak announced he was slashing subsidies for red diesel which he described as a "£2.4bn tax break for pollution".
But the Chancellor said it would not take affect for two years to give businesses time to prepare.
He also promised to keep the relief for farming, fishing, rail and domestic heating.
Mr Sunak also promised to double research and development into alternatives.
This breaking news story is being updated.
