France tackles rising fuel costs with €2 billion discount

Ukraine war is helping to drive fuel prices higher across Europe

The price of diesel and petrol in France has soared. AFP

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The French government will provide a rebate of 15 euro cents ($0.16) per litre on petrol and diesel to help households and businesses cope with surging fuel costs, Prime Minister Jean Castex has said.

France and other European countries are looking at way to protect consumers and businesses from record energy prices, which have surged even higher with the Ukraine war.

The French measure will apply for four months starting April 1 and cost the government about 2 billion euros, Mr Castex said.

The announcement, four weeks ahead of France’s presidential election, adds to more than 20bn euros of tax cuts and subsidies introduced by the French government in recent months to cap electricity and gas bills.

“The government will set up for all French people a fuel discount at the pump of 15 cents per litre. This discount, valid on all fuels, will be applied from April 1 for a period of four months,” Mr Castex told Le Parisien.

“I ask oil companies and distributors to also make an effort on their side. Given their financial situation, I call on them to make an additional gesture.

“If the state makes an effort of 15 cents per litre, and if they make an effort of 5 cents, for example, it is indeed 20 cents that must end up in the pocket of the French.”

He said it will help anyone who buys petrol, specifically households and businesses, including taxi drivers, truckers and fishermen.

Distributors of petrol and diesel will apply the temporary discount at the pump and will be reimbursed by the government, the prime minister said.

He said that allows the discount to kick in quicker than by voting through a tax cut.