Tax revenues linked to fuels fell by more than 80 million euros over the first six months of 2026 compared to the same period in 2025, Public Accounts Minister David Amiel said on RTL on Monday July 6.
With the war in the Middle East, fuel prices soared from February 28, bringing in more money for the state per liter sold. But consumers changed their behavior and bought less gasoline and diesel, which ultimately put a strain on government revenue. “Fortunately we did not listen to those who told us “use this pot to finance aid”” because “there was no pot,” continued David Amiel.
At the end of May, the Minister of the Economy Roland Lescure indicated that fuel consumption had decreased by 14% from May 1 to 20 compared to the same period last year due to the increase in their costs caused by the war in the Middle East. “The French drive a little less, they carpool, maybe they telework a little more,” he added, just after his government announced new targeted aid, particularly for heavy drivers and in road transport, to deal with the rise in fuel prices.
Less fuel, less taxes
While diesel sold for 1.72 euros per liter on February 27 in French service stations, according to a calculation based on government data, its price increased after the first Israeli-American strikes in Iran. At the worst of the crisis, it reached almost €2.40 per liter, an increase of almost 40%. Gasoline has also seen its price skyrocket, to a lesser extent.
Since the signing of an agreement between the United States and Iran in mid-June, crude oil prices have fallen significantly and are now hovering around $70, at a level close to what it was before the war. Pump prices followed suit, while remaining 10% higher on average than on February 27.
The National Rally had called on the government to reduce VAT on fuel to 5.5%, compared to the current 20%, to reduce the bill for motorists. But such a reduction, demanded since 2022, would be contrary to European law, which prevents the application of a VAT rate of less than 15% to fuels, according to experts.
