Rather than a planned increase, the government will keep fuel duty frozen at 57.95 pence per litre for 2022-23 offering “some relief” to “hard pressed” drivers.

It comes as petrol prices continue to reach all-time highs.

In his Budget speech, Sunak said: “With fuel prices at the highest level in eight years I’m not prepared to add to the squeeze on families and small businesses.

“So, I can confirm today the planned rise in fuel duty will be cancelled. That’s a saving over the next five years of nearly £8bn.

“Compared to pre-2010 plans, today’s freeze means the average tank of fuel will cost around £15 less per car; £30 less for vans; £130 less for HGVs.

“After 12 consecutive years of frozen rates, the average car driver will now save a total of £1,900.”

On Sunday, the average price for a litre of unleaded reached a record high of 142.94p.

If duty had gone up, it could have reached 147p taking the cost of a tank to over £80, and diesel 150p, according to the RAC.

Howard Cox, founder of campaign group FairFuelUK, said:“FairFuelUK warmly welcomes freezing Fuel Duty for the 12th year.

“FairFuelUK unashamedly takes some of the campaigning credit for the longest period of any UK excise levy being capped. This is great news and some relief for hard pressed drivers.”

However, he said “it was an opportunity missed too”.

“With pump prices at their highest ever, meaning the Treasury is wallowing in a £1bn unexpected windfall, it was a time for the Government to have cut Fuel Duty significantly.”