The government will be reducing the tax on fuel in order to keep prices stable amid a spike in international prices, Finance Minister Clyde Caruana told Parliament on Wednesday.

Caruana said a Legal Notice to this effect would be published on Thursday.

The measure will cost the government some €2.5 million.

Caruana said petrol and diesel prices have increased by some 20 to 30% in the EU, but have remained stable in Malta.

The government, he said, has reduced the duty tax to the lowest level permitted by the EU.

The measure will remain in place until the end of the year. Fuel prices are expected to start decreasing again by April of next year as production levels make up for increased demand.