The proposed fuel tax plan designed to protect car insurance holders from volatile oil prices has been shelved, it has been reported. According to the Daily Mail, the coalition government has decided to ditch the idea of a fair fuel tax stabiliser, which was one of the key commitments outlined in the Conservatives' election manifesto. The government's new document of policy pledges makes no mention of the tax plan and AA president Edmund King has written to the chancellor George Osborne to voice his concerns at the move.

"This will concern Britain's motorists if it has been dropped without the promised consultation. It was something that appealed to Britain's 33 million motorists," the newspaper reports him as saying.

Transport secretary Philip Hammond had previously pledged to end the previous government's 'war on motorists' by bringing down the cost of driving. However, Mr King believes the decision to scrap the fuel tax plan is another blow for car insurance customers. News source: news.swiftcover.com