France announces to cut record fuel prices

PARIS - French Finance Minister Pierre Moscovici on Tuesday said fuel prices in France will be temporarily cut to ease the cost of living, fulfilling a campaign promise by President Francois Hollande.

Prices at the pump would drop by 6 euro cents ($0.08 dollars) for three months, according to Moscovici.

"Prices at the pump will be down by 6 cents: 3 cents for petroleum firms, 3 cents for the government. It is a very substantial amount," Moscovici said.

For a full tank of 25 litres, the decrease would represent a saving of 1.50 euros.

The move will cost the French state 300 million euros, which will be compensated by budget redeployment, the minister noted after meeting the country's petroleum companies.

"This decision will be relevant within 24 hours and therefore the price at the pump will go down now," Moscovici said, adding that a "more sustainable mechanism" would be set up later.

Prices of unleaded petrol stood at 1.614 euro per liter in August, up 7.95 percent from the same month a year earlier, while prices of diesel also rose by 9.45 percent to 1.435 euro per liter, according to the French Union of Petroleum Industries' figures.