French PM excludes widespread fuel tax cuts due to strict budget limitations.

France will continue to provide only limited assistance to consumers affected by soaring fuel prices, according to Prime Minister Sebastien Lecornu. He announced an additional €710 million ($823 million) in support and encouraged a transition to electric vehicles.

Paris has been hesitant to reduce fuel taxes, unlike many other European nations, even as oil prices have risen above $100 per barrel due to the closure of the Strait of Hormuz. This reluctance stems from one of the euro zone's highest budget deficits.

"We're not going to alter our strategy," Lecornu stated at a press conference. "We reject any broad, indiscriminate cuts to fuel taxes." Instead, he mentioned that the government is extending focused measures and increasing incentives to mitigate the effects on specific groups.

Lecornu emphasized that France should capitalize on its significant advantage—its fleet of nuclear reactors that generates over two-thirds of the country's electricity—and speed up the electrification of both heating and transport. "The transition to electrification is occurring, whether we like it or not. Did we start too late? No, it's already in progress, thankfully. Do we need to accelerate? We are already doing so," he remarked.

Support programs currently in place for industries such as fishing and agriculture will be extended by three months, while taxi drivers will receive a new bonus to assist with electric vehicle purchases. Additionally, companies will be permitted to double a tax-free bonus for employees commuting to work, increasing the maximum amount to €600.

Lecornu mentioned that the government’s most optimistic forecast anticipates a return to more typical conditions by autumn, though he noted that much more pessimistic scenarios are also being considered due to the high level of uncertainty. Budget Minister David Amiel stated that this new package would raise total spending aimed at helping households manage increased fuel costs to nearly €1.2 billion. He also indicated that the government would cover these costs through savings in other areas and would revise its budget targets by the end of June.