Amid a backdrop of soaring energy prices, the French government has unveiled the measures it intends to put in place to help struggling households and small businesses.
Speaking in an interview with French media Ouest-France, Energy Minister Maud Bregeon outlined a series of measures ranging from subsidies for electric vehicles and heat pumps as well as further targeted aid for industries hit hardest by rising costs.
Here is what the government’s plan entails:
Pressure on fuel prices
The government will meet fuel distributors early this week to ensure that recent falls in global oil prices are seen at the pump – in France fuel prices are currently averaging at €1.99 per litre for petrol and €2.25 for diesel.
The international price of oil per barrel has dropped in recent days – from around $115 a barrel to below $90 – and officials want consumers to see the benefit quickly.
While no formal decree has yet been issued to regulate distributor margins, Bregeon made clear that all options remain on the table. She also confirmed that France has asked the European Commission to investigate refinery margins, amid concerns about pricing practices across the supply chain.
Electric vehicles
A new leasing scheme for electric vehicles will be launched in July, initially targeting 50,000 lower-income households earning under €2,200 per month. Monthly costs are then expected to range between €100 and €200.
It follows several previous schemes intended to help individuals with the cost of buying an electric vehicle, one of which had to be closed early due to high demand.
On the new scheme, subsidies will vary depending on how and where vehicles are produced, with higher support for models manufactured in Europe, especially those with European-made batteries and motors. The aim is both to lower emissions and to strengthen domestic and European industry.
Officials say switching to electric vehicles can cut fuel costs by up to 75 percent. However, there is an initial investment involved, and that is what the government needs to make more affordable.
Heat pumps
Support for heat pumps will also be increased in the coming weeks, with additional bonuses of up to €2,000 on top of existing aid. Total aid could reach €13,000 for lower-income households.
The government wants to ensure that households switching from gas heating see an immediate financial benefit, with combined equipment and electricity costs lower than previous gas bills.
READ ALSO: What you need to know about installing a heat pump in your French property
France already has around four million heat pumps installed and aims to reach a rate of one million new installations per year by 2030.
Officials expect new-generation heat pumps to be powerful enough by 2026 to eliminate the need for gas backup systems, even during cold periods.
Planned restrictions on hybrid heating systems combining gas and heat pumps will apply only to building permits submitted from 2027, giving developers and households time to adapt. Support will continue for alternative solutions such as biomass heating and district heating networks.
Business support
The government is focusing on sectors most exposed to energy costs like agriculture, fishing, transport and construction. Measures introduced in April could be followed by a second wave of support in May, particularly for fishermen, where diesel prices remain a major cost.
Bregeon rejected calls for large-scale general aid, arguing that such policies would be a strain on public finances and ultimately lead to higher deficits or taxes.
READ MORE: What support is the French government offering for workers as fuel prices rise?
