Macron asks EU to relax energy and climate rules to ease soaring fuel prices
The French president wants the European Commission to delay a law that would fine oil and gas companies which fail to report methane emissions.
French President Emmanuel Macron has requested the European Commission to relax certain energy and climate regulations in an effort to mitigate the impact of skyrocketing fuel prices on the European Union. The request comes as the Middle East conflict has driven oil prices to near their highest since May, while gas prices have more than doubled since the U.S. and Israel bombed Iran in February.
The closure of the Strait of Hormuz has exacerbated the situation, leaving Macron with limited fiscal room to reduce domestic fuel taxes to help ease the burden on consumers. Facing potential social unrest at home, Macron turned to the EU to seek assistance in resolving the issue. He called for a one-year delay in enforcing new EU rules that would impose fines on oil and gas companies for failing to report methane emissions.
The methane regulation aims to reduce potent planet-warming emissions, but has faced criticism from the U.S. government and the fossil fuel industry. The Commission had already recommended member countries to postpone fining offenders until the end of 2029, but Macron urged Brussels to explicitly push back the deadline by one year to provide more legal certainty for fossil fuel importers.
Additionally, the French President proposed temporarily easing EU rules on fuel quality, allowing for greater use of biofuels in diesel. In a letter to Commission President Ursula von der Leyen, Macron emphasized the importance of addressing these points at the European level to strengthen import and production capacities. The government has been subsidizing fuel for affected sectors and is expected to announce further measures.
As the presidential campaign approaches, Macron briefed party leaders and candidates on how the war in Ukraine and the Middle East conflict are driving fuel prices to unprecedented levels in France. He also announced that France will host a G7 meeting to discuss the issue. While the government has ruled out cross-sector fuel tax cuts, which could weaken tax revenues and strain the country's efforts to reduce the deficit, Prime Minister Sébastien Lecornu has pledged to meet the 5 percent deficit target next year, despite a €54 billion budget cut.
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