The French government is contemplating a temporary suspension of a 1963 law to permit the sale of fuel below cost. This move comes as they grapple with the challenge of curbing inflation while avoiding further strain on public finances, which have already been heavily utilized.
Prime Minister Elisabeth Borne stated in an interview with Le Parisien that this suspension would be in effect for a limited duration, spanning “a few months.” She made it clear that the government has no intention of reducing fuel taxes.
Borne emphasized, “Through this unprecedented measure, we will deliver tangible benefits to the French people without subsidizing fuel.”
In France, fuel prices hold significant political weight. The introduction of levies in 2018 led to the Yellow Vest movement, triggering extensive protests about living standards.
Despite a recent easing of inflation, pump prices have surged due to a rebound in oil costs. The finance ministry recently urged TotalEnergies SE to cap gas and diesel prices.
Last year, the government directly subsidized household fuel expenses at a considerable cost to the state’s finances. Finance Minister Bruno Le Maire argued earlier in September that reintroducing such measures would be an environmental, fiscal, and diplomatic misstep.
Borne asserted, “Everyone needs to contribute their share. It’s only fair for major industrial firms to play their part.” She added, “The state also has a responsibility to reduce its deficit and debt.”
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