Temporary cut in petrol and diesel taxes promised

PRIME Minister Jean-Marc Ayrault has announced a temporary cut in petrol and diesel taxes to try and ease the impact of rising fuel prices.

Speaking on BFM TV he said this initial step would be taken before a permanent mechanism to regulate fuel prices was introduced.

With a struggling economy, and rising unemployment, many people have seen more and more of their budget being spent on fuel, with prices for sans-plomb 95 heading beyond €2 a litre in Paris.

Jean-Marc Ayrault send the government would meet fuel companies and consumer groups later this month to outline its plans, although suppliers have said a price cap could result in shortages.

Ultimately, with plans to make €33bn of savings next year to meet deficit targets, the government has little room for manoeuvre as a reduction in fuel taxes will see the money having to be made up from elsewhere.