A Kent haulier is refusing to celebrate despite a proposed 2p rise in fuel duty being scrapped by the Government.

Peter Knight, who owns a small haulage company in Faversham, says the decision - revealed in a statement by Chancellor Alistair Darling on Wednesday - will have no positive impact on his business.

Mr Darling bowed to public pressure and scrapped the tax hike, scheduled for the autumn, after three protests by hauliers and outrage from motorists. Now any rise to fuel tax will be deferred until at least April 2009.

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The Treasury statement said: "The global credit crunch and sharp rises in world oil prices have pushed up prices at the pump. (The) decision will help motorists and businesses get through what is a difficult time for everyone."

But Mr Knight disagreed. "To put it on was a complete no brainer anyway," he said.

"We aren't celebrating as we aren't going to be any better off anyway…as we aren't on an equal playing field at the moment (with the continent)."

~ Listen: Peter Knight speaks to kmfm >>>

The decision to delay any duty increase may appease the many motorists who felt it was unnecessary on top of the soaring price of oil.

Petrol prices have shot up by around 25 per cent in the past year, while diesel is up 36 per cent. Freezing fuel duty until the next budget will soften the blow of the spiralling cost of oil, but will ultimately cost the Exchequer more than £1billion.

Mr Darling's decision was criticised by the Conservatives as a masked ploy for votes ahead of next week's by-election in Glasgow.