Britain to cut fuel duty by 5p per litre for one year - Sunak

LONDON, March 23 (Reuters) - British finance minister Rishi Sunak on Wednesday said he would cut fuel duty by 5 pence per litre for the next 12 months in a bid to reduce the cost of gasoline at the pumps for motorists after a surge in oil prices worldwide.

"Fuel duty will be cut... by 5 pence per litre," Sunak said in a budget update speech to parliament.

"I have decided it will be in place until March next year – a full 12 months. Together with the freeze, it's a tax cut this year for hard-working families and businesses worth over 5 billion pounds ($6.60 billion)."

The level of fuel duty - a major source of income for the public finances - has been frozen since 2011 at 57.95 pence per litre for standard petrol and diesel.

Other European governments have also responded to the latest surge in energy prices. France, Italy, Sweden and Spain have moved to subsidise automotive fuel costs. Germany is considering similar plans. ($1 = 0.7580 pounds)