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Given the increased cost of automotive diesel and petrol, Her Majesty's Government of Gibraltar has announced it is taking action to reduce the price of fuel to help consumers.

The duty on diesel will be reduced by 15 pence so that 40 pence of duty per litre has been reduced to 25 pence of duty per litre.

As a result, the duty on petrol is also reduced as follows, depending on the octane, namely:

• 98 which is 37 pence of duty per litre;

• 95 which is 38 pence of duty per litre; and

• diesel premium which is 37 pence of duty per litre,

are all reduced to 25 pence of duty per litre.

These reductions apply for the period to the 1st July.

Thereafter, the duties will revert automatically to their original level, unless the Government otherwise makes separate provision for alternate rates to apply.

The Chief Minister, the Hon Fabian Picardo QC MP, said: "We are taking steps to reduce duties and to help consumers with this reduction of duties in fuels, and we expect petrol stations to pass this on to their customers. We want to help where we can and this measure is one where we consider the help we provide may also drive up revenue for Government from this source of duties. We are conscious of the steps being taken in neighbouring Spain on fuel duties and subsidies, and we are responding to that also through these measures. This year's Budget will be a tough one, with no give-aways, and I am timing the period of this reduction towards the traditional dates of our Budgets, so I can then take a view of whether to reverse, increase or reduce this measure as I may be advised is appropriate then."

This applies to fuel at petrol stations for cars and bikes etc. It does not apply to fuel for marine vessels.