LONDON, July 16, 2008 (AFP) - Britain is to delay a planned increase in fuel duty following protests triggered by soaring world oil prices, finance minister Alistair Darling said on Wednesday.

The two pence (two euro cent, four US cent) rise was due to take effect in October but has now been postponed following demonstrations by truck drivers and outrage from motorists' organisations over pump prices.

Crude prices hit peaks above 147 dollars last week, exacerbating the global credit crunch which is fuelling a world slowdown.

'The global credit crunch and sharp rises in world oil prices have pushed up prices at the pumps,' Darling said, announcing the move in a parliamentary written answer.

'Today's decision will help motorists and businesses get through what is a difficult time for everyone.'

Truckers have this year held several protests over high fuel prices, which they say threaten to put them out of business, bringing gridlock to London.

Motorists' group the Automobile Association says the average price of diesel in Britain is 133 pence per litre -- the most expensive out of 24 European Union countries monitored. Tax accounts for over 50 percent of that price.

The AA welcomed Darling's announcement -- president Edmund King said: ''We are delighted that the Chancellor (finance minister) has seen common sense.

'The prospect of extra, government-inflicted pain was not something that road users were looking forward to.'

Darling had already pushed back the 2p fuel duty rise from April to October.

The move is the latest U-turn by Prime Minister Gordon Brown's beleaguered finance minister.

One of the most embarrassing came in May, when Darling announced a near three billion pound handout to poorer families hit by amid the abolition of the 10p starter tax band.