Open

Coming up

Don't miss

Replay


LATEST SHOWS

ENCORE!

Shakespeare’s 450th Birthday : The Best of the Bard

Read more

BUSINESS DAILY

The Tour de France, a PR machine

Read more

IN THE PAPERS

Coverage of the third plane crash in one week - from France, Algeria and Burkina Faso

Read more

IN THE PAPERS

Coverage of the plane crash that took 116 lives - almost half of them French

Read more

DEBATE

Gaza: A Truce At All Costs?

Read more

AFRICA NEWS

Central African Republic: Brazzaville ceasefire talks deliver fragile deal

Read more

FOCUS

Sluggish tourist season in Crimea

Read more

ENCORE!

Bartabas : Mixing Christ with Spanish music and dancing horses

Read more

IN THE PAPERS

Shifts in the propaganda war waged between Israelis and Palestinians

Read more

  • Live: ‘No survivors’ from Algerian plane crash, says Hollande

    Read more

  • French families grieve for Algerian plane crash victims

    Read more

  • Protest against Gaza offensive turns deadly in West Bank

    Read more

  • Ukraine names acting PM after Yatseniuk's shock resignation

    Read more

  • Deadly strike on UN shelter in Gaza Strip

    Read more

  • Wreckage of Algeria plane found in Mali

    Read more

  • BNP to pay $80 million for defrauding Dept of Agriculture

    Read more

  • Pope meets Christian woman sentenced to death in Sudan

    Read more

  • Air Algérie crash: 'We should eliminate the missile hypothesis'

    Read more

  • Italy’s Nibali cruises to victory in 18th stage of Tour de France

    Read more

  • Iraqi parliament elects moderate Kurd as president

    Read more

  • US, European agencies lift travel restrictions to Tel Aviv

    Read more

  • No end to fighting until Israel ends Gaza blockade, Hamas says

    Read more

France

French PM vows to reduce record fuel prices

Text by News Wires

Latest update : 2012-08-22

France's Prime Minister Jean-Marc Ayrault vowed Wednesday to introduce a temporary cut in fuel taxes in a bid to drive down the price drivers pay at the pump, which has hit record levels in recent months.

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 a lid on pump prices which have soared to record levels was a prominent pledge of Francois Hollande's presidential campaign that swept the Socialists  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.
              
But fuel companies had warned the government against slapping down a simple price cap, saying this would simply lead to shortages.
              
Ayrault also downplayed this option.
              
"If you freeze prices for three months and then you free them, then you haven't resolved anything," said the prime minister.
              
The reduction in tax gives the state the right to "ask producers and distributers to also make an effort" to reduce pump prices, he added.
              
Ayrault said Finance Minister Pierre Moscovici would meet with fuel companies and consumer groups on August 28 to outline the government's measures.
              
He didn't provide any more details about the planned measures other than to say it would reduce the amount of tax in the cost of fuel and that it was not a return to a variable rate.
              
"For the moment it will be a simple reduction" in the tax, said Ayrault, "but it will be modest and temporary."
              
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.
             

Date created : 2012-08-22

  • FRANCE

    France gives green light to holiday home tax hike

    Read more

  • FRANCE

    French speed cameras pull in multimillion cash haul

    Read more

  • FRANCE

    Hollande’s ethical diplomacy called into question

    Read more

COMMENT(S)