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News World Europe France to tackle surging fuel prices by offering a $2.2 billion rebate to help drivers The fuel rebate will ease pressure on motorists, households and businesses
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French Prime Minister said France will offer a fuel rebate to help drivers cope with rising prices (PA ) Your support helps us to tell the story From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
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Your support makes all the difference. Close Read more France is planning to provide a rebate of 0.15 euros ($0.16) per litre of transport fuel to help drivers cope with surging prices , Prime Minister Jean Castex said in an interview with a newspaper on Saturday.
The measure will apply for four months beginning on April 1, and is expected to cost the government around 2 billion euros, the Prime Minister told Le Parisien.
The rebate will help anyone who buys fuel, specifically households, businesses, taxi drivers, truckers and fishermen and could save motorists nine euros on a 60 litre tank, he said, adding:
“I ask oil companies and distributors to also make an effort on their side. Given their financial situation, I call on them to make an additional gesture.
“If the state makes an effort of 15 cents per litre, and if they make an effort of 5 cents, for example, it is indeed 20 cents that must end up in the pocket of the French.”
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Drivers and businesses have been hit by the second largest daily hike in diesel prices for more than 20 years (Peter Byrne/PA) (PA) Distributors of gasoline and diesel will apply the discount at the pump and then will be reimbursed by the government, which Mr Castex said is quicker than voting in a tax cut and will also benefit the companies that are exempted from fuel levies.
It comes as President Emmanuel Macron gears up his campaigning for a second term in the next presidential election.
The rebate is on top of 20 billion euros Macaron’s government has already spent on tax cuts and subsidies to reduce gas and electricity bills.
Energy prices have reached record highs this year and prices are only expected to rise amidst Russia’s invasion of Ukraine. Russia is the third biggest producer of oil in the world and has been accused of limiting its gas supplies into Europe as a means of placing political pressure on the EU.
Russia threatened to stop gas supplies to Europe for the first time since the invasion in comments by Deputy Prime Minister Alexander Novak to state television on Monday- a move which would cripple the EU’s economy.
However, on Tuesday the European Commission announced that Brussels will slash its reliance on Russian gas by two-thirds and end imports completely by 2030 in response to Putin’s war.
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