The French government is set to unveil a support package aimed at alleviating the pressure of rising fuel prices on motorists. The move comes as petrol prices have surged in France due to supply disruptions linked to the conflict in the Middle East. With fuel prices continuing to rise, the government has been working on new measures to ease the burden on motorists and other fuel-dependent sectors.
Ahead of the announcement, the government proposed a "golden rule" in the 2027 budget to ensure that the state does not profit from higher fuel prices through additional VAT revenue. According to the prime minister's office, the state has not benefited financially from the surge in prices. Since the crisis began in February, fuel tax revenues have been €407 million lower than during the same period last year, largely due to reduced motorist consumption.
The government has been transparent about fuel tax figures, publishing them every 10 days to demonstrate that higher pump prices are not being used to boost state revenues. This move aims to address concerns that the government is profiting from the surge in fuel prices. By keeping fuel tax figures up to date, the government hopes to maintain public trust and show its commitment to fairness.
To ease pressure on supplies, the government has temporarily authorised petrol stations to continue selling summer-grade diesel until 15 November. Normally, retailers must switch to winter diesel from 1 November, as it is designed to remain usable at lower temperatures. The exemption should also make refinery operations easier, as winter-grade diesel is more complicated to produce.
However, retailers using the exemption must warn customers of potential problems in areas vulnerable to early frost, particularly mountainous regions. As of Monday, diesel was selling for an average of around €2.41 per litre in France, while SP98 petrol stood at €2.28 and SP95 at €2.22. The government is under pressure to address the concerns of various sectors affected by the rising fuel prices.
The pressure on the government was underlined on Monday evening when around 200 farmers gathered in Rodez, southern France, to protest against rising fuel costs. The demonstration, organised by the Coordination rurale farming union, saw protesters dump tyres outside a public finance centre along with several speed cameras. Regional union leader Eloi Nespoulous criticised delays in subsidies for non-road diesel used by farmers.
The protest provided an early indication of the discontent the government is seeking to contain, with the measures announced later on Tuesday likely to come under scrutiny from motorists, farmers and other fuel-dependent sectors. The government's support package aims to address the concerns of these groups and find a solution to the rising fuel prices.
Key points
- The French government proposes a "golden rule" in the 2027 budget to ensure the state does not profit from higher fuel prices.
- The government temporarily authorised petrol stations to continue selling summer-grade diesel until 15 November.
- Around 200 farmers protested in Rodez, southern France, against rising fuel costs.
