The French government has expressed its continued opposition to introducing a price cap on fuel or reducing fuel taxes, according to the Ministry of Economy. This stance was made clear after a meeting with fuel distributors, where some participants discussed the possibility of broader measures, such as temporarily lowering fuel taxes. However, the government has not supported these proposals, stating that the current state of public finances does not allow for such actions.
Regarding the idea of a price cap, the government acknowledged that while private companies are free to implement it if they choose, it remains "unfavorable" due to concerns that such a measure could lead to organized fuel shortages. Instead, the government has focused on providing targeted financial support to households and businesses most affected by high fuel prices, totaling 1.4 billion euros.
In August, tax revenues from fuels increased by 9 million euros compared to the same period in 2025. This increase was largely driven by a 304 million euro rise in net VAT, which offset a 295 million euro drop in excise duties collected. Fuel consumption has also decreased in response to rising prices, with an average decline of 5.5% across the country.
As of the end of August, the average price of SP95-E10 gasoline was 2.124 euros per liter, while diesel averaged 2.292 euros per liter. These are record-high prices since the beginning of the war in the Middle East. Compared to the end of February, gasoline prices have risen by 23.5%, and diesel prices by 33.3%. These figures do not include the island of Corsica or the overseas departments and regions.
The government has assured that there is no risk of fuel shortages at the national level. However, Michel-Edouard Leclerc, president of the strategic committee of Leclerc centers, suggested that public authorities may eventually have to consider reducing fuel taxes if the situation continues. Meanwhile, Dominique Schelcher, CEO of Coopérative U, warned that fuel prices would remain "tense" as long as the conflict in the Middle East continues.
French Government Maintains Opposition to Fuel Price Caps and Tax Cuts Amid Rising Prices
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