France has suspended fuel tax hikes which were due in January following protests across the country, reports Sky News.
French prime minister Édouard Philippe says the tax increases have been suspended for six months.
"This anger, you'd have to be deaf or blind not to see it or hear it," Mr Philippe said in an address.
"The French who have donned yellow vests want taxes to drop, and work to pay. That's also what we want. If I didn't manage to explain it, if the ruling majority didn't manage to convince the French, then something must change."
He added that "no tax should endanger national unity" and the "violence must stop".
It marks President Emmanuel Macron's first significant U-turn on a major policy since taking power in 2017, three weeks after Mr Philippe insisted the government would not change course.