EU countries get OK to cut duty on petrol.
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and diesel
EUROPEAN UNION (EU) heads of government and the European Commission have cleared the way for EU member states to reduce excise duties on fuel as a shortterm measure to fight rising prices.
A communique following last week's EU summit in Brussels told the 27 member states: "Measures can be considered to alleviate the impact of higher oil and gas prices on the poorer sections of the population, hut should remain short-term and targeted."
The communiqué did not specify how member states should act, opening the way for possible direct subsidies to transport firms. Commission president Jose Manuel Barroso told the meeting member states could reduce excise duties on gas and liquid fuels.
One area ruled out in the short term was reducing VAT on fuel, which was opposed by Germany.
Instead, France, which pushed the idea, will work with the EC to "examine the feasibility and imapet of measures to smooth the effects of sudden price increases".