70 million targeted aid and unabated anger. As the conflict in the Middle East led to a surge in fuel prices, the government announced targeted aid measures on Friday for the most affected sectors: fishing, agriculture, and road hauliers.
Under pressure from several road haulier organizations, the bulk of the aid is reserved for small and medium-sized enterprises (SMEs) in economic difficulty. They will receive the equivalent of 20 euro cents per liter of fuel. French fishermen, on the other hand, will benefit from an aid equivalent to “20 euro cents per liter” of marine diesel in April, through a reimbursement upon presentation of fuel invoices. As for farmers, they will be exempt from excise duty on non-road diesel (GNR) used in tractors, at an estimated cost of 14 million euros. This will correspond to a decrease of “4 euro cents per liter”, according to a government source.
“Professionals have been forgotten”
These announcements did not appease the anger of professionals, illustrated on Monday by a slowdown operation on the Parisian ring road at Porte de Vincennes. While Transport Minister Philippe Tabarot highlighted on Europe 1 and CNews that announced aid could potentially be renewed if the situation persists in May and June, the government sent a very clear message: 2026 will not be like 2022, the year that marked the start of massive support in response to the energy crisis. “The state’s money is not limitless,” argued Labor Minister Jean-Pierre Farandou this morning.
“There was a rush under pressure from the most exposed sectors of activity. I find these announcements on Friday evening a bit surprising,” noted Jean-François Husson, general rapporteur of the Senate budget committee, seeing a link with the transporters’ mobilization also announced at the end of last week. “There was insufficient preparation. Yes, in the Senate, we have always been in favor of targeted aid. But some professionals were forgotten at first. I think of healthcare professionals, like nurses, for whom being on the road is their daily routine,” he said.
Friday, a few hours after the publication of a 2025 deficit less degraded than expected (5.1% instead of 5.4% of GDP), Minister of Public Accounts David Amiel emphasized the need to continue fiscal recovery in the country. He warned: the additional expenses caused by sectoral support measures in response to the rise in fuel prices must be offset by equivalent savings.
Does the government have other choices?
“The experience of 2022 was a disaster for public finances even though it allowed some households to get by. For the moment, the State is waiting, hoping that the crisis will not last too long. Three factors are being closely watched: will the war in the Middle East continue? The hypothesis of a ground invasion of Iran. The price of oil could then reach $150. And finally, France’s fiscal situation is not good. This is the end of spending whatever it takes and general aid,” summarized energy specialist economist Jacques Percebois, a professor emeritus at the University of Montpellier.
This is why the government is not considering a measure requested by opposition parties, lowering taxes on fuels, which represent 50 to 55% of the price at the pump. “If you implement general measures, it will cost you a lot of money and will probably be very ineffective, so today we are focusing on those who need it the most,” justified Economy Minister Roland Lescure on the sidelines of the Global Industries exhibition.
Among the general measures, some political leaders, especially from the far-left party, are pushing for the implementation of a “floating TICPE” to smooth out pump prices. The principle is simple: to lower excise duty during periods of high crude oil prices to protect the purchasing power of French people, then reevaluate when oil prices drop to limit the impact on budget revenues.
The National Rally, however, highlights one of the flagship measures of its economic program: a reduction in fuel taxes, arguing that these represent about half of the price per liter at the pump. The party wants to both remove VAT on a basket of 100 essential products and reduce its rate from 20% to 5.5% on energy sources, including gas, electricity, fuels, firewood, and heating oil.
“These measures would have a very strong impact on public finances. Furthermore, they would benefit everyone, including those who are financially able to cushion the shock of rising fuel prices or those who mostly use public transportation. The opposition parties are seizing the opportunity, but the government is right to be cautious. For now, the impact of the energy crisis on growth is limited to a few tenths of a percentage point. We are not facing a risk of widespread business bankruptcies like during the Covid period,” noted economist Sylvain Bersinger, founder of Bersingéco.
The closure of the Strait of Hormuz, a strategic artery for oil exports but also for gas in the Gulf, heavily affects countries dependent on fossil fuel imports, such as Germany where inflation is rising. “In France, for now, electricity, which is linked in price to gas, remains stable because the share of gas power plants has dropped below 3% in France, compared to 6% in 2022,” noted Jacques Percebois. The European electricity market depends on the concept of the “marginal cost.” The price of the cost of the last unit of production – generally from gas-fired power plants – used to supply the grid serves as a reference for setting the kilowatt price.
