PARIS, April 3 (Reuters) - Rising French government borrowing costs are wiping out the budget boost from higher fuel tax receipts triggered by surging global energy prices, budget minister David Amiel
French Debt Costs Wipe Out Gains from Higher Fuel Tax Revenues
Impact of Rising Borrowing Costs and Fuel Tax Revenues on France's Budget
PARIS, April 3 (Reuters) - Rising French government borrowing costs are wiping out the budget boost from higher fuel tax receipts triggered by surging global energy prices, budget minister David Amiel said on Friday.
Fuel Tax Revenues Surge Amid Global Energy Price Hikes
French fuel prices, which include a 20% value added tax and an excise duty on volume, have jumped since the outbreak of the U.S-Israeli led war in Iran, reaching their highest levels since Russia's 2022 invasion of Ukraine.
The government has collected an extra 270 million euros ($312 million) in fuel tax revenue in March, Amiel told Franceinfo radio, adding that the figure was likely to fall this month as more people cut back on driving.
Borrowing Costs Offset Gains from Fuel Taxes
At the same time, France's borrowing costs have risen sharply as global bond yields climbed during the war in Iran, costing the state around 300 million euros per month, Amiel said.
Additional Financial Pressures from Subsidies and Support Measures
Emergency fuel subsidies for the transport, fishing and farming sectors, combined with energy support for low-income households, have pushed the total additional monthly cost to about 430 million euros.
The government announced the measures last week but is already facing renewed pressure to do more. It has so far said France can only afford targeted and temporary support for those needing it most.
Exchange Rate and Reporting Credits
($1 = 0.8665 euros)
(Reporting by Leigh Thomas; Editing by Sudip Kar-Gupta)
