David Cameron yesterday gave the strongest hint yet that the Government will scrap a planned 5p-a-litre rise in fuel duty

David Cameron yesterday gave the strongest hint yet that the Government will  scrap a planned 5p-a-litre rise in fuel duty in next week’s Budget – in the  face of mounting public anger over soaring prices at the pumps.

The Prime Minister said the Government was acutely aware of the ‘pain’ caused  by record petrol prices, which have now topped £1.30 a litre.

Under plans drawn up by Labour, fuel duty is due to rise by 1p above inflation  next month – an increase likely to translate into 5p a litre at the pumps.

Challenged over the issue in the Commons yesterday Mr Cameron said he could not  give out details of next week’s Budget.

But he hinted that the planned increase was likely to be scrapped, adding: ‘I  know the pain that families and small businesses are feeling from the huge  numbers of fuel duty increases that were put through by the last government.

'In their last Budget, they (Labour) put through seven fuel increases - one for  before the election and six afterwards. What a surprise they didn't even have  the brass neck to raise that.’

Chancellor George Osborne is also expected to report back on proposals for a  ‘fair fuel stabiliser’ which would automatically reduce fuel duty as oil prices  rise.

His comments came as Ed Balls launched an extraordinary personal attack on  George Osborne over the issue – suggesting that the millionaire Chancellor was  too rich to understand the problems that soaring fuel prices are causing  millions of ordinary families.