Chancellor Rishi Sunak will scrap plans to hike fuel duty in the upcoming Budget, according to the Sun.
The levy was due to go up next year from 57.95p per litre to 60.79p.
The duty will be frozen for the second time this year.
The decision follows petrol prices rocketing to record levels across the UK.
The average price per litre hit a record 142.94p on Sunday, with soaring oil prices and retailers blamed for the spiralling costs.
The Sun has reported that MPs have now been privately assured by the Treasury that the scheduled 4.9 per cent rise for 2022 will not go ahead.