CONCESSIONS have been given to France to lower excise duty charged on unleaded petrol and diesel, notably allowing its regional governments to set their own rates where there is political pressure to cut fuel prices.

The European Union (EU) Council of Ministers has allowed France to apply reduced levels of taxation to unleaded petrol and diesel, provided cuts are no greater than E35.40 per 1,000 litres of unleaded or E23 per 1,000 litres of diesel.

Also, the reductions must not exceed any difference between diesel duty charged to non-commercial and commercial users. Other strings imposed by the council include that regional variations are linked to local ‘socio-economic conditions’ and do not grant a region ‘a competitive advantage in intra-EU trade’.