As fuel prices continue to squeeze French households, the government’s proposed mechanism to redistribute the VAT windfall generated by soaring pump prices is facing sharp criticism from opposition ranks, with a senior National Rally (RN) lawmaker dismissing the plan as “totally phony.”
A Contradictory ‘Golden Rule’
The government intends to propose a so-called “golden rule” in the 2027 budget that would redistribute the surplus value-added tax revenue generated by rising fuel costs, according to information confirmed by Matignon. But Thomas Ménagé, spokesperson for the RN group in the National Assembly, told franceinfo on Tuesday that the measure appears to be “totally phony.”
The deputy for Loiret argued the idea contradicts previous government statements that denied the fuel price surge was boosting state revenues.
“Either they think there is no surplus—and therefore they are taking the French for idiots—or there is one,” Ménagé said, adding that the government “should lower VAT rather than create another bureaucratic maze.”
New Support Measures Expected
The government is set to unveil new support measures at 5 p.m. for French citizens hardest hit by the fuel price spike, even as its budgetary room for manoeuvre remains limited and international constraints driving the energy crisis appear set to persist.
Health Minister Stéphanie Rist sought to reassure healthcare workers, telling RMC that “nurses will obviously not be abandoned” under the aid package. “We will propose targeted, responsible measures that do not forget care professionals,” she said.
‘Summer’ Diesel Extended Amid Supply Strain
In an exceptional move, the state has authorised fuel distributors to continue selling “summer-grade” diesel for an additional two weeks, until 15 November, citing supply difficulties linked to the situation in the Middle East. The decision was published Tuesday in the Official Journal.
Normally, distributors are required to market so-called “winter” diesel—more resistant to low temperatures—from 1 November. Beneficiaries of the extension must nevertheless assume “full responsibility for any problems that may arise from the use of this diesel” and inform customers of the risk of fuel gelling in areas prone to early frost.
Prices Remain Stubbornly High
Diesel prices stood at around €2.41 per litre on average in France on Monday, according to public data. Petrol prices were €2.28 for SP98 and €2.22 for SP95.
Meanwhile, in a letter sent Friday to European Commission President Ursula von der Leyen, President Emmanuel Macron called for emergency measures to boost fuel production in Europe, advocating a temporary relaxation of regulatory constraints.
Opposition Pushes for Tax Cuts
Philippe Juvin, a Les Républicains deputy and general rapporteur for the budget, told franceinfo that “fuel is too expensive, people can’t cope anymore, we have to help them.” He urged the government to work toward a price target not exceeding €2 per litre, favouring the temporary reduction or cancellation of certain taxes over a price freeze.
Ménagé echoed that sentiment, arguing that “other countries are cutting taxes” and warning that “when the country is at a standstill, the French stop investing.”
