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France Moves to Scale Back Biofuel Tax Breaks in 2026 Budget

The proposal enters debate following warnings of higher pump prices from motorists, farmers and hauliers.

Overview

  • Draft budget measures would scrap the special tariff for B100 and phase down the fiscal advantage for E85 as part of cutting 23 tax niches.
  • Government briefings point to a staged E85 price increase of about €0.15 per litre each year for three years, with some projections citing roughly €1.20 per litre after the phase‑in from around €0.71 today.
  • Motorists’ group 40 millions d’automobilistes estimates a total rise of €0.40–€0.50 per litre, while industry figures warn of broader knock‑on effects on petrol pricing.
  • Bercy cites annual costs of roughly €430 million for the E85 advantage and €100–€160 million for B100, with about €125 million in recoverable revenue in 2026; the government argues B100’s current regime mainly benefits producers, though transporters warn of a €0.30 per litre hit.
  • Opposition from agricultural unions and motorists’ associations contrasts with environmental NGOs questioning the climate benefits of first‑generation biofuels, and the package now faces uncertain parliamentary amendments.