French government allocates €450 million for fuel price relief program

The French government said on Tuesday it will broaden its targeted fuel‑price relief programme, adding €450 million in support for businesses and workers hit hardest by soaring energy costs. The new funding brings the total aid pledged since the start of the year to €1.4 billion. The move comes as Prime Minister Gabriel Attal faced mounting pressure from industry groups and trade unions demanding immediate help to keep costs from crippling operations and household budgets.

Fuel prices have surged to record levels this winter, driven by a combination of higher crude oil prices, tighter supplies and a weaker euro. The spike has squeezed profit margins for transport firms, logistics operators and small retailers, while workers in sectors such as delivery and construction see their take‑home pay eroded by higher commuting costs. The government’s earlier relief measures, introduced in January, covered a limited set of sectors and were criticized for being too narrow. Expanding the scheme now aims to prevent a wave of bankruptcies and a rise in unemployment as the cost‑of‑living crisis deepens.

The €450 million package will target firms with fuel consumption above a set threshold and employees whose wages fall below a median income level. Eligible companies will receive direct subsidies that offset up to 30 percent of their diesel and gasoline expenses for the next six months. Industry bodies have welcomed the boost, saying it will keep supply chains moving, while some union leaders argue the aid still falls short of what workers need. At the same time, President Emmanuel Macron has called for a faster rollout of biofuels in diesel, hoping to diversify the energy mix and lower reliance on imported oil. Environmental expert Dr Sophie Leroux warned that a rapid increase in biofuel use could strain agricultural land and raise emissions if not carefully managed, urging the government to pair the fuel aid with strict sustainability checks.

The next step is parliamentary approval of the funding, expected within weeks. If passed, the relief could stabilize prices for millions of commuters and keep key sectors afloat through the summer. Analysts say the move also signals the administration’s intent to balance short‑term economic support with longer‑term energy transition goals. How effectively the biofuel push is regulated will determine whether the policy eases the price squeeze without compromising France’s climate commitments.