In an effort to control inflation without adding to the enormous amounts of public funds already spent, the French government proposes to overturn a rule from 1963 and permit the sale of petroleum at a loss.
In an interview with Le Parisien, Prime Minister Elisabeth Borne stated that the law would be suspended for only “a few months.” She disregarded the possibility of a reduction in fuel taxes.
“With this unprecedented measure, we will get tangible results for French people without subsidizing fuel,” Borne said.
In France, where a rise in taxes in 2018 provoked the Yellow Vest movement and months of protests over living standards, fuel prices are a volatile political topic.
Although inflation has decreased recently, gas prices have increased as a result of a spike in the price of oil. Earlier this month, the finance ministry contacted TotalEnergies SE to set a gas and diesel price cap.
To the detriment of the public coffers, the government directly subsidized home fuel costs last year. Reintroducing such regulations would be an ecological, budgetary, and diplomatic “aberration,” according to Finance Minister Bruno Le Maire, who made this statement earlier in September.
“Everyone has to take their share. It’s normal to make big industrial firms contribute,” Borne said. “The state’s responsibility is also to cut its deficit and debt.”
