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
- 1euronews live TV - News | euronews : the latest international news as video on demand
- 2Spain’s first case of diphtheria in 30 years: parents of six-year-old ‘oppose vaccines’
- 3[Live updates] NGO flotilla bids to break Israeli blockade of Gaza
- 4Greek debt crisis is “absolute supremacy of capital over humans”
- 5[LIVE UPDATES] France: man decapitated, several wounded in chemical plant attack
- 6Large Hadron Collider ready to embark on an unprecedented voyage of discovery
- 7Israel prepares to repel boarders as ‘Freedom Flotilla 3’ tries to run Gaza blockade
- 8NewsWires : euronews : the latest international news as video on demand
- 9Greek debt summit – Live updates
- 10‘Distractingly sexy’ scientists hit back in lab chemistry polemic
- 11Romania, Hungary and Bulgaria focus of EU cash fraud probes
- 12Interpol issues ‘red notice’ for accused ex-FIFA bosses
- 13Summit up in Brussels as Greek proposals give food for thought and rumours fly
- 14Battle of Waterloo, live-tweeting 200 years on
- 15Greek PM faces day of crucial bailout talks in Brussels
- 16Citizens take power in Spain’s largest cities as a political revolution sweeps the country
- 17Italy discovers biggest illegal waste dump in Europe
- 18Hungary: billboard war sparks international concern
- 19Latest News Bulletin
- 20[Latest] AKP loses its majority as Kurdish party enter Turkish Parliament
Wires > News
- 00:48 CET Burundi votes in boycott-hit poll; blasts, gunfire heard
- 00:34 CET U.S. spy agency wiretapped two French finance ministers – Wikileaks
- 00:33 CET Car bomb in Yemeni capital hits mourners, dozens wounded
- 23:59 CET Insight – France bets on Arab Sunni states as Iran nuclear deal…
- 23:54 CET Yemeni forces launch Scud missile at Saudi Arabia – Yemen military…
- 23:42 CET ICC prosecutor pleads for U.N. Security Council to act on Darfur…
- 23:22 CET Four Israelis wounded in suspected Palestinian West Bank shooting
- 21:49 CET Israel blocks foreign activist flotilla from reaching Gaza