France to keep fuel subsidies as US-Iran deal expected to lower pump prices
Prime Minister Sébastien Lecornu pledged that fuel subsidies would be paid as planned, even with an expected drop in crude prices following Monday's US-Iran agreement.
Aid payments confirmed
Prime Minister Sébastien Lecornu assured the public on Monday 15 June that direct fuel subsidies would be disbursed as previously announced, regardless of any drop in oil prices stemming from the US-Iran accord reached the same day. Writing on the social network X, he stated that the payments would be made "comme convenu" (as agreed). Government spokesperson Maud Bregeon added that the first transfers would be executed "cette semaine" (this week).
The targeted aid covers heavy private users, dubbed "grands rouleurs," and the sectors most exposed to high fuel costs. Lecornu's message was coordinated with President Emmanuel Macron's appearance on TF1, where he reinforced the administration's commitment to seeing that falling crude markets translate into genuine relief at French filling stations.
The announced aids, both for heavy users and for the most exposed sectors, will be paid as agreed.
Pump price vigilance
President Macron, speaking on TF1's 1pm news, said the government would "s'assurer" (ensure) that the anticipated drop in crude prices is "bien répercutée à la pompe" (properly passed on at the pump). He cautioned that the oil market reaction would be rapid, but the benefit for consumers would take longer to materialise.
It is in the coming weeks that we will have an impact on prices. For the logistical chains to restart, it will take a few weeks.
Macron's timeline tempers expectations of an immediate windfall. Lecornu echoed that the government would remain "vigilant" on pump price changes.
Diesel already below 2 euros
The retail diesel price, the most consumed fuel in France, had already dipped below the symbolic 2-euro threshold on Friday 12 June, according to data released Monday by the DGEC (Direction générale de l'Energie et du Climat). The average litre cost fell to 1.995 euros, down from 2.014 euros the previous week, marking the first time since early March that diesel fell under that level.
This pre-existing decline, coinciding with the diplomatic breakthrough, gives the government a backdrop for its pledge. Spokesperson Bregeon confirmed that the first subsidy payments will flow this week, offering households and businesses short-term support as the global price signal works its way through the supply chain.
