Prime Minister Sébastien Lecornu warned the Council of Ministers on Wednesday against measures on fuel VAT described as « as demagogic as they are useless ». This comes as oil prices rise over 5% due to the war in the Middle East, already affecting fishermen, farmers, and truckers. He also requested proposals to protect consumers from energy price volatility.
The war in Iran, triggered on February 28, 2026, by an Israeli-American offensive, has caused a surge in oil prices, with an increase of over 5% in recent days, according to Le Figaro. This Middle East tension is directly affecting pump prices in France, where diesel has risen up to 25 cents in seven days.
In the Council of Ministers on March 11, 2026, Prime Minister Sébastien Lecornu warned against a potential VAT cut on fuels, describing it as a measure « as demagogic as it is useless ». According to his entourage, this aims to avoid populist responses to a complex geopolitical situation. Meanwhile, Lecornu requested proposals from ministers on energy price volatility to « protect consumers ». These ideas include regulatory measures such as capping distributor margins or mechanisms to smooth fuel price increases and decreases.
This rise is severely impacting fuel-dependent sectors. Testimonies report that « profitability disappears very quickly » for fishermen, farmers, and road transporters, who face an immediate shock. Bertille Bayart, in a March 10 column, notes at least a 15% jump in fuel prices but believes it is too early to panic, with French households spending an average of 5 euros per day on fuel. She warns against returning to a « whatever it costs » energy policy, which is not viable.
The government is closely monitoring the situation, with announced checks in service stations, while suspicions weigh on distributors.
