PARIS, May 27: French President Nicolas Sarkozy on Tuesday called for a cut in European oil taxes to help consumers as fishermen and truck drivers across the continent staged protests against soaring prices.

French riot police cleared fisherman away from a key oil depot in southern France as British truck drivers staged a demonstration in London. Spanish fishermen extended a strike and lorry drivers threatened to join in.

Italian and Greek fishermen may start strikes this week.

“I want to ask the question to our European partners: if oil continues to increase, should we not suspend the VAT taxation on the price of oil?” Sarkozy said in a radio interview.

The effect of skyrocketing fuel prices on fishermen has steadily gained attention throughout the continent, and European ministers on Tuesday called for direct EU economic aid to the industry.

French Agriculture Minister Michel Barnier, on the sidelines of an informal meeting of his EU counterparts in Slovenia, said other EU ministers had agreed that “a budget should be earmarked” for economic assistance to fishermen.

Spanish Agriculture Minister Elena Espinosa Mangana called for direct EU intervention.

Sarkozy’s proposal came amid three weeks of protests from fishermen and pressure to address France’s cost of living, with polls showing it a top concern among the public.

French consumers pay about 19.6 per cent VAT on the price of fuel.

Sarkozy said he could not take a unilateral decision to suspend or cap the tax. But he warned that the price of oil, already hit record over $135 a barrel, “is going to continue to increase.”

Sarkozy said France would channel additional revenue from VAT on oil products into a fund to help those struggling with higher fuel prices. He predicted it would generate 150-170 million euros per quarter.—AFP