France Weighs Targeted Fuel Aid as Iran War Pushes Up Costs

Fuel price signs at a Total gas station in Paris, France, on Thursday, March 12, 2026. TotalEnergies raised its diesel price cap by 10 euro cents ($0.12) at French service stations as the Middle East conflict squeezes supplies and drives oil prices higher. Photo by Nathan Laine /BloombergArticle content(Bloomberg) — French Prime Minister Sebastien Lecornu has asked ministers to prepare measures to help individuals who depend on cars after fuel prices surged on the Iran war.Sign In or Create an AccountEmail AddressContinueor View more offersArticle content“While I don’t believe in blindly paying out billions, I am in favor of targeted aid,” he said Thursday at a press conference in Bordeaux.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentThe government has already announced very limited fuel subsidies for some sectors such as trucking and fishing, and an expanded distribution of energy support to low-income households. But it has so far avoided broader, costly measures after indiscriminate outlays in 2022 contributed to expanding a budget deficit the country is still struggling to reduce. Article contentArticle contentLecornu said any subsidies will be implemented on a monthly basis to allow the government to quickly adapt and control costs.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article content“We won’t abandon anyone, but we won’t spend money we haven’t got,” he said.Article contentOpposition lawmakers including far-right leader Marine Le Pen have called for steep cuts to taxes on gasoline and diesel and accused the state of profiting from a boost in revenues as prices rise. Article contentBudget Minister David Amiel said on Friday the state has received additional sales-tax revenue on fuel of around €120 million, while a levy on volumes has brought in €130 million more than expected after drivers rushed to refuel in early March on fears of shortages due to the conflict in the Middle East. Article contentBut he added that the government estimates that targeted aid already far announced totals about €130 million and that increases in bond yields will drive up 2026 debt financing costs by around €3.6 billion.Article content“There is every reason to fear that the possible extra revenue for the state will add up to millions while the cost of the crisis will add up to billions,” Amiel said on Franceinfo radio. Article contentAs well as repeating that any new aid will be targeted, the budget minister said that every euro of new spending would be offset by cuts elsewhere. Article content(Adds comments from budget minister from fifth paragraph.)Article contentTrending Three Ships Appear to Exit Hormuz by New Oman Coast Route PMN Business Posthaste: Look for the Canadian dollar to be an 'underperformer' once the war winds down, says CIBC News U.S. targets Canada’s cloud-computing move as trade irritant Economy CRA denied taxpayer with multiple health issues the disability tax credit Personal Finance Pain at the gas pumps? That's nothing compared to the damage this fuel shock can do Economy Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.

Three Ships Appear to Exit Hormuz by New Oman Coast Route PMN Business Posthaste: Look for the Canadian dollar to be an 'underperformer' once the war winds down, says CIBC News U.S. targets Canada’s cloud-computing move as trade irritant Economy CRA denied taxpayer with multiple health issues the disability tax credit Personal Finance Pain at the gas pumps? That's nothing compared to the damage this fuel shock can do Economy