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France takes steps to mitigate fuel price rise amid Middle East war

France

The French government has announced steps to limit the impact of rising crude oil prices on consumers and businesses, including extending deadlines for tax payments and asking refineries to boost output. The moves came amid the virtual shutdown of the Strait of Hormuz, the transport link for 20 percent of the world's oil.

The government also asked oil refineries to swiftly check to see if they could "quickly and temporarily increase the production of refined products".
The government also asked oil refineries to swiftly check to see if they could "quickly and temporarily increase the production of refined products". © Fred Tanneau, AFP file photo

France's government announced some indirect measures Monday to alleviate fuel price rises resulting from the Middle East war, while asking refiners if they were able to boost their output.

The decisions were made as many countries grappled with the virtual shutdown of the Strait of Hormuz in the Gulf, through which 20 percent of oil passes in peacetime, and as Iran continued to target facilities in oil- and gas-rich Gulf neighbours in retaliation for US-Israeli strikes.

Watch moreFrom missile strikes to rocketing oil prices: The economic consequences of the Iran war

 

The French steps comprised an easing of some payroll levies, extended deadlines for tax payments and public loans for companies in the transport and fishing sectors.

Fishing associations dismissed them as "mini-measures" falling far short of what was needed for trawlers to be able to set out to sea.

According to a government letter seen by AFP, Paris also asked oil refineries to swiftly check to see if they could "quickly and temporarily increase the production of refined products".

The aim was to "alleviate market tensions on refined products in Europe and reduce European market tensions if this situation is prolonged".

One refining company, North Atlantic, told AFP that it believed it could only increase production "by a maximum 10 percent... if everything aligns".

French oil giant TotalEnergies was already producing at maximum capacity at its refineries, one expert told AFP.

France imports half of the diesel it requires.

(FRANCE 24 with AFP)