France Launches Emergency Aid Package to Address Energy Price Volatility
London (ANTARA) - The French government has launched an emergency aid package worth €70 million (approximately Rp1.36 trillion) to protect the country’s major industries from energy price volatility triggered by the conflict in the Middle East.
In its official statement, the government identified the transportation, agriculture, and fisheries sectors as the primary focus of the aid. This step is deemed crucial to safeguarding “food sovereignty” and ensuring the smooth operation of national economic activities.
Of the total aid package value, €50 million (approximately Rp976.4 billion) will be allocated to small and medium-sized road transport companies. The aid is provided in the form of a fixed subsidy of €0.20 per litre of fuel.
Meanwhile, the agriculture sector will receive a one-month tax exemption on diesel fuel. On the other hand, the fisheries industry is allocated €5 million (approximately Rp97 billion) to cover the surge in fuel costs, which now account for around 35 per cent of total operational expenses.
The government is also offering additional schemes, including the suspension of tax and social security payments without penalties, as well as “Boost Fuels” loans of up to €50,000 (approximately Rp976 million) for small businesses affected.
However, this specific policy is temporary and will only apply until April 2026.
The emergency policy was enacted amid rising tensions in the Middle East following airstrikes by the United States and Israel on Iran, which killed more than 1,340 people.
Iran subsequently retaliated with drone and missile attacks targeting Israel and several countries in the region, including Jordan and Iraq, which have also disrupted global market stability and flight routes.
In addition, disruptions in the Strait of Hormuz since early March have exacerbated the situation. The route, which typically carries around 20 million barrels of oil per day, is now facing obstacles, driving up shipping costs and global oil prices.