The French government has struck a deal with the energy industry to cut fuel prices at the pump by six cents a litre.
The agreement will last for three months and means drivers will save 1.50 euros on every 25 litres.
The cost will be shared between the state and the oil companies and will result in 300m euros in lost tax revenues.
The announcement was made by the French Economy Minister Pierre Moscovici.
“This measure will also give us time to find a more permanent solution which is what the the president and the prime minister want”, said Moscovici.
The reduction was to come into effect within 24 hours of the announcement. It is a result of an election pledge by Francois Hollande to tackle rising fuel costs.
“It’s better than nothing, six cents here, six there, it adds up”, said one woman buying petrol.
The price cut will be reviewed after three months.
Fuel taxes are an important source of revenue for the French government which is struggling to cut its deficit in a stagnating economy.
Afficher Gas prices 28/08/2012 sur une carte plus grande
Petrol prices evolution in the EU and in the Eurozone Source: ec.europa.eu
Copyright © 2014 euronewsMore about:
- 1Moscow claims Ukrainian jet flew close to Malaysian airliner
- 2MH17 flight recorders are handed over by Ukrainian rebels
- 3Demonstrations in Israeli cities over Gaza conflict
- 4EU foreign ministers expected to discuss further sanctions on Russia
- 5Israeli air strikes continue as death toll in Gaza conflict escalates
- 1298 killed as Malaysia Airlines passenger jet shot down over Ukraine
- 2[LIVE UPDATE] Malaysia Airlines MH17: Dutch forensic team arrives at crash site
- 3‘Lonely and alienated’ Oscar Pistorius involved in nightclub scuffle
- 4Researchers reach mysterious giant crater in Siberia
- 5Ukraine: Black boxes recovered from downed Malaysian airliner
Wires > News
- 08:29 CET French parliament adopts disputed rail reform
- 07:43 CET Oil smuggling finances Islamic State’s new caliphate
- 05:05 CET Airports in east China face delays due to military exercises
- 04:51 CET U.S. announces arrests in border crackdown on human smuggling
- 04:46 CET Peru’s Humala lifts party activists in cabinet shake-up
- 04:44 CET Poll shows Brazil’s Rousseff would win presidential runoff
- 04:24 CET Australian Islamist returns home to surveillance, not jail
- 00:26 CET Kuwait strips citizenship of two opposition figures, relatives