Closure of Strait of Hormuz affects fuel prices

The closure of the Strait of Hormuz has led to a permanent increase in fuel prices, with the cost per liter now exceeding two euros. This has significantly impacted various economic sectors, including transportation and personal travel expenses.

Mileage allowance no longer reflects real costs

The mileage allowance, which allows employees to deduct the cost of their professional travel, is no longer aligned with the actual expenses due to the rise in fuel prices. This discrepancy has raised concerns about the fairness and accuracy of the current reimbursement system.

Fuel cost impact on mileage rate

Fuel accounts for approximately one-third of the total mileage cost for a vehicle. With a 30% increase in fuel prices, a 10% increase in the mileage rate for the 2026 income tax has been proposed to better reflect the real costs incurred by employees.

Amendment to the 2027 budget bill

An amendment to the 2027 budget bill, proposing a 10% increase in the mileage rate, was submitted by the entire Ensemble pour la République (EPR) group. This includes all deputies from the Renaissance party, such as Gabriel Attal, Guillaume Kasbarian, Paul Midy, and Élisabeth Borne.

Amendment approved by deputies

The amendment to increase the mileage rate by 10% was adopted by the deputies during a session at the National Assembly on Thursday, October 15. However, its future depends on the ongoing parliamentary process for the 2027 financial law.

Multiple amendments under consideration

Over 80 amendments have been adopted in just three days since the start of the plenary session on Wednesday, October 14. These amendments come from various political groups within the Assembly, including LFI, Éric Ciotti's UDR, RN, Modem, LR, Renaissance, PS, and the ecological group.

Repeating the 2026 budget scenario

The current situation mirrors the 2026 budget scenario, where an amended text was ultimately rejected by the Assembly, resulting in a 49.3 outcome. If this happens again, the government will have the authority to select which amendments are adopted.

Uncertainties about the mileage rate boost

The minister in charge of Public Accounts, David Amiel, expressed uncertainty regarding future fuel prices during the session. He emphasized other measures related to fuel prices, such as the extension of a 100 euro allowance at the end of the year, and suggested that the government might reconsider the mileage rate boost.