France will extend targeted fuel subsidies for fishermen, construction companies, and farmers until the end of the year, aiming to preserve economic activity and jobs. The measures are a response to surging fuel prices linked to the Iran war.
The extended fuel subsidies aim to mitigate the impact of high energy costs on key French industries, supporting economic activity and employment amidst geopolitical tensions affecting global energy prices.
PARIS, Sept 16 (Reuters) - France will extend targeted support for sectors hit hard by surging fuel prices stemming from the Iran war until the end of the year, Prime Minister Sebastien Lecornu's office announced on Wednesday.
The aim of the extension is to "preserve economic activity, jobs and growth while giving companies visibility until the end of the year," according to a statement from Lecornu's office.
French unions held a day of strikes on Tuesday to protest issues including pay rates and rising fuel prices. The government is preparing to present a budget proposal aimed at keeping the deficit under control ahead of the 2027 presidential election.
For fishermen, the fuel subsidy will increase from 25 to 35 centimes per liter. Eligible construction and public works companies will receive support at a rate of 20 centimes per liter of non-road diesel. Farmers will also continue to receive a subsidy of 15 centimes per liter, which will be adapted to form part of the emergency response to drought. This fuel support will complement other aid measures under the agricultural emergency plan.