France to spend €70 million on April fuel subsidies for key sectors

The French government will allocate €70 million to cushion the impact of rising fuel prices on farmers, small logistics companies and fishermen, as energy markets react to the ongoing war in the Middle East.

Presenting the plan on March 27, Economy and Finance Minister Roland Lescure said the measures would apply from April 1 through the end of the month, Politico reports. 

"We have built a response at the national level which is gradual, targeted, sector-specific and limited to the month of April," Lescure told reporters.

The support package includes a full suspension of excise taxes on non-road diesel used by farmers. The tax, which currently costs farmers €3.86 per hecto-liter, will be waived at an estimated cost of €14 million to the state.

In addition, the government will allocate €50 million to subsidise fuel costs for trucks operated by small logistics companies most affected by higher prices. These operators will receive €0.20 per liter in support.

Fishing vessels will also benefit from a reimbursement of €0.20 per liter, with the measure expected to cost €5 million.

"My primary concern is, above all, to sustain growth while ensuring that every euro of public money is spent effectively," Lescure said.

Agriculture Minister Annie Génévard added that she would call for suspending the European Union’s carbon border adjustment mechanism on fertilisers during a meeting of EU agriculture ministers on March 30, in a bid to further ease pressure on farmers.

Lescure stressed that the current situation does not mirror the scale of the 2022 energy crisis and said the government would not need to revise its 2026 budget law, as the funding for the April measures will be drawn from existing ministerial budget allocations.

By Sabina Mammadli