France announced €710 million ($825 million) in new aid Thursday to help workers and businesses cope with rising fuel prices driven by the war in the Middle East.
The new package brings total government support to €1.2 billion, including €470 million in previously announced aid, Public Accounts Minister David Amiel said at a news conference alongside Prime Minister Sebastien Lecornu.
"Today we will provide support of €1.2 billion for the workers and businesses that need it most," said Amiel.
Lecornu said the war in the Middle East would "last … in one form or another," and that a return to normal for the global economy was not expected before "summer or autumn."
"Our obsession is that the country must keep running," he said, stressing that the government would change the "scale" of aid measures, not its "philosophy."
The prime minister also ruled out "any general, indiscriminate reduction in fuel taxes," saying that move would weigh heavily on public finances.
The support measures include doubling the tax-free fuel bonus that companies can pay to employees using their vehicles to commute, from €300 to €600.
The government will also extend fuel aid for fishermen and farmers for three months, with support amounting to 30 to 35 cents per liter of diesel for fishermen and 15 cents per liter of non-road diesel for farmers.
Transport Minister Philippe Tabarot also announced the extension of flat-rate fuel subsidies for three months, as well as incentives for taxi drivers to purchase electric vehicles.
Lecornu said the measures would require savings elsewhere, while insisting that budget proposals in the autumn would not include tax increases.
