The price of unleaded petrol has risen 25% over the past year and diesel has risen 36%.
Pressure has been mounting for tax to be cut. An announcement was made by Chancellor Alistair Darling ahead of a Conservative-called debate on fuel duty set to take place in the Commons later that the 2p rise already postponed to October would be further delayed.
Gordon Brown has defended the decision to postpone a 2p rise in fuel duty after David Cameron suggested it was timed to coincide with next week's by-election.
At prime minister's question time, Mr Cameron said: "The government announced today that after months of dithering it is scrapping the 2p tax rise on fuel. Can you tell us whether this decision had anything to do with the Glasgow East by-election?"
Mr Brown replied: "It is right to announce, as we have done previously, a decision before the House rises (for the summer break)."
"And in recognition of the problems that people face with petrol, we are freezing the duty of petrol for the full year. And we will bring forward further measures to help families in due course."
The prime minister's spokesman said there were "lots of precedents" for announcements on fuel duty to be made before the parliamentary summer recess.
He said Mr Darling "decided to do it now because he wanted to end any uncertainty".
But Liberal Democrat leader Nick Clegg warned a "winter of discontent" was "just around the corner" with jobs at risk and families coping with rising food and energy prices.
The RAC welcomed Mr Darling's announcement, but said: "It does not go far enough. We would like to see the chancellor not just postpone future rises but actually cut fuel duty."