Prime Minister Edouard Philippe told Parliament: “The government is ready for dialogue and is showing it because this tax increase has been dropped from the 2019 budget bill.” In a statement the Elysée said that Mr Philippe and Mr Macron “both wished the increase in the carbon tax be removed” from the 2019 budget. They added: “The citizen and parliamentary debate in the coming weeks and months will have to find solutions and funding that will meet the challenges of the ecological transition; solutions that will preserve the purchasing power of our citizens.”

The concession was the latest attempt to quell the worst crisis of Mr Macron’s presidency, which has seen his popularity plummet just 18 months since taking office.

Mr Macron has been accused of “not listening” and being out of touch with the public.

Just one in five French people think the 40-year-old is doing a good job and 72 per cent supported the protests according to an Elabe survey for BFM TV.

More than 100,000 french residents took to the streets and hit major cities, causing damage and disruption over the past three weekends.

At the height of the protests, up to five thousand police officers were been deployed across Paris, with officers setting up metal barriers around the Champs-Élysées.

This policy change comes despite Mr Macron labelling the protesters as “thugs” and vowing not to give in to their “demands”.

In a speech last week to announce new climate and energy policy measures, he said: “I do not confuse citizens and their demands with thugs.”

Mr Macron added: “We must not change course, because the policy direction is right and necessary.”

In the past 12 months the price of diesel had risen by around 23% to €1.51 (£1.32) per litre.

Spending for 2019 proposed a further increase of 6.5 cents on diesel and 2.9 cents on petrol from January 1, 2019.

US President Donald Trump appeared to mock Macron over the policy shift, which could make it harder for France to meet its CO2 emissions reduction target, a core element of the Paris climate agreement of 2015.

Mr Trump wrote on Twitter: “I am glad that my friend @EmmanuelMacron and the protestors in Paris have agreed with the conclusion I reached two years ago.

“The Paris Agreement is fatally flawed because it raises the price of energy for responsible countries while whitewashing some of the worst polluters.”

A further tax policy has overshadowed Mr Macron’s reign, after it emerged the government could also amend a wealth tax that Mr Macron shrank last year to cover only real estate assets, earning him criticism as the “president of the rich”.

Government spokesman Benjamin Grivet said all tax-related policies needed to be periodically evaluated.

Mr Grivet said: ”If a measure that we have taken, which is costing the public money, turns out not to be working, if it’s not going well, we’re not stupid – we would change it.”

Despite the concessions by the government further protests are planned by the ‘gilets jaunes’ for this Saturday.