As soaring energy prices crush businesses, France rolls out a new $500 million aid package, including help with commuting and heating costs
Fuel prices that have spiked since the start of the Iran war on Feb. 28 are dealing a hard blow to small businesses across Europe.
In a small bakery in Saint-Just-en-Chaussée, 90 kilometers (55 miles) north of Paris, Kevin and Sandrine Luce's ovens are working hard to produce baguettes. They spend a significant amount of money on heating oil, currently paying 2,230 euros ($2,540) for 2,000 liters (528 gallons) of fuel, up from 1,932 euros ($2,200) last year.
Fuel prices have surged since the Iran war began on February 28, causing hardship for small businesses across Europe, including the Luces. The Luces are not alone; there are more than 34,000 bakers in France, and about one quarter of them use oil or gas-fired ovens. The energy crisis is particularly severe in rural areas, where people often rely on cars for transportation due to limited public transit.
The French government has introduced a new aid package worth 450 million euros ($512 million) to help those affected by the soaring energy prices. This includes subsidies for people who commute long distances to work and financial assistance for families with energy bills. However, some individuals, like Martial Realland, are struggling to cope with the increased costs.
Realland, who owns a food truck, has seen his expenses rise, and he may stop working if the situation doesn't improve. Christine Loir, a lawmaker from the National Rally party, is advocating for lower taxes on heating oil to help rural residents, including bakers whose ovens use oil. Despite the challenges, the Luces remain committed to maintaining their bakery's prices, understanding that raising them would be counterproductive for their customers.
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