Observed both on i386 and on armel, on Package: apt 0.7.25.3ubuntu7

(issue not present on armel 0.7.25.3ubuntu3 package)

Worked around using following line in /etc/apt/apt.conf:
Acquire::http::proxy "http://<address>:<port>";

-- 
apt is not honoring http_proxy environment variable
https://bugs.launchpad.net/bugs/558338
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