France Suspends Fuel Hike

France suspended the planned fuel price hike after “yellow vest” protests erupted violent over the weekend, prompting calls for calm and government talks.French Prime Minister Edouard Philippe will make the announcement on Tuesday. The fuel hike was to come into effect from January 1st 2019.

In France over 3,00,000 people participated in the “Yellow Vest” protests. Their concern was the rising cost of fuel.

French President Macron had requested political leaders to meet with protestors. On Monday two protest leaders, pulled out of a meeting with Prime Minister Philippe planned for Tuesday.

Philippe canceled a trip to the COP24 climate conference in Poland and has stayed back to ease the tensions.

The government suspension of the fuel hikes will take some heat out of the protests. The protests turned violent statues were damaged, vehicles torched and police attacked.

The cost of diesel has surged 16% this year from an average 1.24 euros ($1.41) per liter to 1.48 euros ($1.69), even hitting 1.53 euros in October, according France’s oil industry federation.