A planned 2p rise in fuel duty this autumn could be scrapped, Prime Minister Gordon Brown has hinted.

Giving evidence to the Commons Liaison Committee, Mr Brown said that past increases had not been implemented.

He told the committee: "I think you will find that in most years since 2000 that the duty has actually been frozen."

Mr Brown said any such decision will be for Chancellor Alistair Darling in his Pre-Budget Report in the autumn.

However, he added: "It is clearly a matter that will be looked at very, very carefully over the next few weeks."

Mr Brown rejected claims that lower taxes on fuel in continental Europe made it impossible for UK hauliers to compete with rivals from overseas.

"As far as continental hauliers are concerned, there are higher VAT rates, higher social insurance payments, higher taxes in these countries," he told the committee.

"You have got to balance that off against the cost of fuel."

A proposed carnet system to charge foreign trucks for using UK roads had proved too expensive to introduce, he said.

Current pressure on oil prices could continue for years to come over rising demand for oil from Asia, Mr Brown warned.

He said: "If demand succeeds supply and is likely to exceed supply for years to come, people will expect the price to rise."

The Prime Minister said that the Government would be bringing forward further measures to help low income families with their fuel bills.

"If we can take measures that will help people cut their energy bills by using energy more efficiently or finding a way that we can help them cut the consumption of energy we will do so," he said.

Mr Brown said that the Government would also be making announcements on securing future gas supplies as reserves in the North Sea declined.

"For the last 30 years, we have had oil and gas from the North Sea. That has provided a very substantial amount of the energy needs of this country," he said.

"As the North Sea oil and gas runs down - as it is running down - we are making alternative arrangements."

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