Surging prices, voters’ anger: How France’s fuel crisis could shape the presidential campaign
In recent weeks, fishermen have blocked oil depots and port entrances in the south of France, while farmers have staged demonstrations over rising fuel prices. Fuel is set to become a major political flashpoint, just seven months away from France's elections.
As the presidential election looms in France, fuel prices are taking center stage in the political landscape. A global fuel supply crisis, sparked by Middle East tensions and the closure of the Strait of Hormuz, has led to record-high energy costs. Fishermen and farmers have taken to the streets, protesting the rising prices, which have hit a new high of €2.41 for diesel and €2.17 for SP95-E10 gasoline.
The French government has since introduced targeted relief measures, totaling €450 million, to alleviate the burden on struggling households. However, the country's budget deficit is projected to reach 5.4% of GDP this year, and public debt is nearing 120% of GDP. To address the issue, the government has proposed a "fuel golden rule" in its 2027 budget, which would redirect any additional tax revenue from rising fuel prices towards measures supporting consumers.
Despite France's higher fuel taxes compared to other European nations, the government maintains control over the market through monitoring and oversight, with profit margins primarily stemming from refining rather than distribution. The prevalence of diesel vehicles and dependence on imports further exacerbates France's vulnerability to fuel price fluctuations.
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