President Emmanuel Macron's government is dropping further fuel-tax hikes in next year's budget in the face of protests across France over living costs, his prime minister said on Wednesday, a day after announcing their suspension for six months.

The Macron administration is struggling to defuse the anger driving the "yellow vest" protests as it reels from the riots in central Paris last Saturday, the worst in five decades.

"The government is ready for dialogue and is showing it, because this tax increase has been dropped from the 2019 budget bill," Prime Minister Edouard Philippe told the lower house of Parliament.