France Rejects Fuel Tax Cut as Pump Prices Climb, Tells Refiners to Raise Output

Overview

• Official data show national averages at about €1.95 per liter for SP95‑E10 and €2.11 for diesel, marking sharp weekly increases to multi‑year highs.
• Prime Minister Sébastien Lecornu asked all refiners to assess rapid, temporary output hikes and authorized the Gravenchon refinery to increase capacity to ease supply tensions.
• The government ruled out a general VAT or TICPE reduction, citing strained public finances and an estimated cost of roughly €17 billion, and is prioritizing targeted support.
• Spain’s VAT cut on fuel to 10% took effect this weekend, Greece announced per‑liter subsidies and a fuel card, and Sweden plans temporary tax reductions, prompting many French motorists to refuel across the Spanish border.
• Targeted measures were announced for the fishing sector as maritime diesel costs surged, while private actions continue with TotalEnergies capping petrol at €1.99 and diesel at €2.09 and Leclerc’s promised discounts rolling out unevenly.