french pm to temporarily lower petrol taxes
Last Updated : GMT 05:17:37
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Last Updated : GMT 05:17:37
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French PM to temporarily lower petrol taxes

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Emiratesvoice, emirates voice French PM to temporarily lower petrol taxes

Paris - AFP

French Prime Minister Jean-Marc Ayrault promised Wednesday a modest and temporary cut to the taxes on petrol and diesel in order to reduce pump prices for drivers. He said the reduction would come ahead of the introduction of a more permanent mechanism to regulate fuel prices, speaking in an interview on BFMTV and RMC radio. Keeping down pump prices which have soared to record levels was a key plank of the Socialists during the presidential and parliamentary elections that brought them to power earlier this year. A lull in global oil prices temporarily removed it from the political agenda, but in recent weeks the price of crude has climbed and so have prices at the pump, squeezing consumers who are already feeling the pinch as the French economy stagnates. Fuel companies had warned the government against slapping down a simple price cap, saying this would simply lead to shortages. However a reduction in the fuel tax, which under EU rules member states must keep within a certain range, will lead to a drop in revenue and could hurt the government\'s efforts to reduce its budget deficit to 4.5 percent of GDP this year.

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