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Government and oil industry cut fuel prices

Réunion B2G_29 juin 2011.03THE French government and fuel suppliers have agreed a price cut on petrol and diesel of up to six euro cents per litre for the next three months.

With the price at the pump heading to record levels the French finance minister, Pierre Moscovici, said an agreement had been put in place to help motorists.

The measure will see the government cut its tax take by three euro cents per litre, with fuel suppliers undertaking a similar cut, and a more permanent measure is promised in the future.

Lower prices should be seen at the pumps immediately as the measure will be introduced over the next 24 hours, but there is a high price for the move.

Pierre Moscovici said the cost to the government would be at least €300 million ($375 million) in lost tax revenues for the three month period.

Related: Compare French petrol prices on the web

Comments

Six centimes per litre? I lose more than than down the back of the sofa every day. Yippee!

Must admit makes you wonder just how long it will last!

The cost of petrol and diesel oil varies by more than six centimes as I drive about my nearest town, so I can make those sort of savings anyway.

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