European Union (EU) heads of government and the European Commission have cleared the way for EU member states to reduce excise duties on petrol and diesel, as a short-term measure to fight rising prices.
Following last week's EU summit in Brussels, a communiqué 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, but 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 companies, although Commission president José Manuel Barroso told the meeting member states could reduce excise duties on gas and liquid fuels. One approach ruled out in the short-term, however, was reducing VAT on fuel, which was opposed by Germany.