The French government announced an expansion of targeted fuel subsidies to 5.5 million potential beneficiaries until the end of the year on Tuesday, while raising the tax-free fuel allowance cap that companies can grant to employees to 1,000 euros.
Fiscal measures and pump prices
The previous ceiling for the tax-free corporate fuel subsidy stood at 600 euros. The broader package expands an initiative that previously covered 3 million people, granting each beneficiary a 100 euro payment. Government spokesperson and energy minister Maud Bregeon said the 100 euro subsidy corresponds to an average of 40 cents of fuel per liter for two months for beneficiaries. The extra measure carries direct fiscal costs. Government official responsible for the budget David Amiel said the subsidies announced on Tuesday represent 450 million euros in additional expenditure.
Diesel prices reached 2.41 euros on Tuesday, surpassing the previous record average price of 2.38 euros. Fuel traded near 3 euros at highway stations. Minister of Economy and Finance Roland Lescure said authorities are aware that the situation is very difficult for our compatriots.
Broader relief and european proposals
The administration had previously extended support measures to fishermen, construction contractors, and agricultural producers due to their high fuel consumption. Sectoral interventions preceded this household aid.
French President Emmanuel Macron sent a letter to European Commission President Ursula von der Leyen proposing measures requiring approval from the European Union, including easing gasoline and diesel quality standards, increasing biodiesel in diesel engines, and postponing the EU methane regulation plan scheduled for January 1.
Related: Indonesia to raise 2026 fuel subsidies as crude rallies · Brazil authorizes 6.6 billion reais in fuel subsidies
Source: The French government
