ACS

Alistair Darling is coming under increasing pressure to drop plans to raise fuel duty as hundreds of hauliers and campaigners gather to protest against rising fuel prices.

Today, 1,000 hauliers are expected to block the A40 into London before marching on Downing Street to hand in a petition. There are growing signs that ordinary drivers may join the protests, creating a mass movement against high petrol costs in a bid to persuade the Chancellor to postpone the 2p per litre increase planned for later this year. Hauliers, who want a 25p per litre rebate, claim that rising pump prices are driving many businesses "to the wall".

Figures show that the Treasury could afford to scrap the planned rise in duty after gaining £1.3 billion in taxes from soaring oil prices since the budget.

The price of fuel continued to climb over the bank holiday weekend, with the average cost of a litre of unleaded reaching 114.2p and diesel hitting 126.7p. This follows a run of almost 30 days of record fuel prices on forecourts.

Both the AA and the RAC Foundation issued pleas to the Government to scrap the planned 2p increase in fuel duty, which is due to take effect in October.

In total, the Government has already enjoyed more than £1.3 billion of tax revenues that it did not expect to get when it drew up its forecasts in the Budget. Andrew Howard, at the AA, said: "We are asking the Government to postpone October's fuel duty increase.

It is estimated that the Treasury will lose just £550 million in revenues from deferring the fuel duty increase for six months. The hauliers are pressing for a diesel rebate, arguing that many transport companies are struggling and being forced to pass on the cost increases to customers.

Organisers said that up to 1,000 lorries from as far apart as Cornwall and the North East were making the journey, calling for an "essential user rebate", which would allow them to claim 25p per litre of duty back.