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France Doubles Fuel Aid for Commuters – The European Times

Paris commits €450 million as prolonged disruption keeps petrol and diesel prices high

France will double its fuel allowance for millions of workers who depend on a car, part of a new €450 million relief package announced as disruption to global oil supplies continues to push up household and business costs.

The “grands rouleurs” allowance will rise to €100 for the three months from October to December, compared with €50 over the previous three-month period. The government said the payment was equivalent to assistance of about 40 cents per litre for eligible journeys.

Eligibility will expand from three million to an estimated 5.5 million people. According to the French government’s fuel-relief announcement, the income ceiling will reach €2,050 a month for a single person, €4,070 for a couple and €6,100 for a couple with two children.

Applicants must use a car for work and generally travel at least 15 kilometres between home and their workplace, or drive at least 8,000 kilometres annually for professional purposes. Previous recipients of the allowance covering April to September should receive the new payment automatically. The government is still considering how to adapt the scheme for France’s overseas departments.

Targeted support extended across several sectors

The package prolongs fuel support for farmers, fishers and construction businesses until 31 December. Farmers will continue to receive assistance of 15 cents per litre for non-road diesel, while construction companies will receive 20 cents per litre.

For fishing businesses, the state intends to cover as much as 70% of the increase in fuel costs compared with pre-crisis levels. Interest-free loans of up to €50,000 per company are also planned through the public investment bank Bpifrance.

Community nurses who travel extensively will qualify for a separate €80 payment. Home-care workers will gain access to the commuter scheme under an adapted daily-distance threshold. Companies facing immediate cash-flow pressure may seek delays to social-contribution payments.

Employers will also be allowed to provide as much as €1,000 a year in tax-exempt fuel assistance, up from the current €600 ceiling. The annual energy cheque for lower-income households, worth between €48 and €277, is to be brought forward from April to January 2027, subject to its adoption in the budget.

Tax pledge still needs parliamentary approval

The government has also promised a “golden rule” under which any additional VAT or excise revenue generated by rising fuel prices would be redirected into energy-crisis assistance.

That change is not yet law. Ministers intend to introduce it as an amendment to the 2027 budget, meaning its final form will depend on parliamentary approval. Regions, which receive part of France’s fuel-tax revenue, would also be covered.

The proposal enters a wider European argument over who should bear the cost of energy disruption. Six EU governments have sought discussions on a common levy on exceptional oil-company earnings, as examined in The European Times’ reporting on windfall profits.

France’s government says there has so far been no public windfall. Fuel-tax receipts have instead fallen by approximately €407 million because consumption declined, according to figures presented during Tuesday’s announcement. Ministers nevertheless said they would monitor the supply chain for excessive margins.

Relief without a general price subsidy

The package continues France’s preference for targeted payments rather than a universal reduction at the pump. This concentrates public money on lower- and middle-income workers and sectors with high fuel dependence, while avoiding a subsidy for every motorist regardless of income or need.

It also creates practical risks. Newly eligible workers may not know they must apply, while households whose journeys fall just below the distance threshold can still face substantial transport costs. Automatic payments will initially help only those who received the earlier allowance.

Separate assistance for road hauliers is ending because French rules allow operators to pass fuel-price changes through to customers. That could protect transport companies while shifting part of the increase into the prices of delivered goods.

The government attributes the latest pressure to continued restrictions around the Strait of Hormuz and damaged production and refining capacity in the Middle East, Russia and Ukraine. Economy Minister Roland Lescure said France faced no immediate shortage, although ministers are seeking additional supplies and regulatory flexibility for domestic refineries. An independent account from France’s parliamentary channel confirmed the expanded eligibility and sector measures.

The immediate result will be a larger cushion for workers and fuel-intensive businesses through the end of the year. It will not insulate France from a prolonged international supply shock. The durability of the response will depend on energy-market conditions, administrative access to the new support and whether parliament turns the government’s tax pledge into law.

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