PM Theresa May tells Chancellor Philip Hammond to cancel his 2p-a-litre fuel duty hike

PHILIP Hammond will cancel a 2p rise in fuel duty in his first mini-Budget Autumn Statement next week, The Sun can reveal.

The move was asked for by PM Theresa May to help the six million struggling Brits that she has dubbed the ‘just about managings’.

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It delivers another stunning victory for our long-running Keep It Down campaign.

The hated fuel tax was due to rise in line with inflation from April next year, which is expected to soar to 3%.

A 2.1p hike would have put £1.36 on each full tank, adding up to hundreds of pounds a year for drivers.

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Prices of unleaded and diesel fuels have increased marginally despite a rise in petrol prices said the RAC

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But the Chancellor will abolish that when he announces on Wednesday that fuel duty will be frozen for another year until at least April 2018.

The expensive move is expected to cost the state coffers £1.3bn.

A senior government source told The Sun last night: “There is not a lot of money to spend, so we are targeting our resources at the people who really need it.

“Keeping costs down for motorists who need their cars to get to work or their children to school is very important.”

Scrapping the rise will mean extending the fuel duty freeze into a sixth year.

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As The Sun also revealed this week, campaigners are pushing for a 3p cut in fuel duty, which they argue will pay for itself in the extra stimulus to the economy that it creates.

FairFuel UK campaign founder Howard Cox: “If Mr Hammond does freeze duty again next week, it would mean he is continuing George Osborne’s good work.

“For low-income families and haulage companies that might have 50 trucks, this has a huge impact on their bottom lines.”

Former Tory Chancellor George Osborne’s originally froze it at 57.95p-a-litre in his March 2011 Budget.

But Mr Hammond’s first Autumn Statement will be less complicated than the ambitious financial interventions that his predecessor became known for as he attempts to make a clean break from Mr Osborne.

Treasury insiders also expect it to take far less time to deliver.

Mr Hammond will also have to unveil grim new forecasts that will predict a slump in growth because of Brexit wobbles.

But there will be a few significant spending announcements to help the economy through a rocky patch over the EU departure.