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France Moves to Scale Back E85 and B100 Tax Breaks in 2026 Budget Sent to Parliament

Industry forecasts higher pump prices as lawmakers take up the proposal.

Overview

  • The 2026 budget text presented on October 14 proposes eliminating 23 tax niches, including scrapping B100’s special tariff and progressively reducing E85’s fiscal advantage.
  • The motorists’ group 40 Millions d’automobilistes estimates the phased change could add about €0.40–€0.50 per litre to E85 over three years, while industry group SNPAA warns a jump from roughly €0.71/L to about €1.20/L is possible if enacted.
  • More than one million drivers use E85 in France, and producers and farm unions such as FNSEA and JA say the shift would strain a domestically sourced value chain and plan to press MPs for amendments.
  • SNPAA cautions that distributor pricing could create a short‑term knock‑on increase of around 2.3 cents per litre on petrol beyond the direct rise for E85.
  • Environmental groups including Inspire and Canopée question the fuels’ overall ecological benefits, even as proponents present E85 as a lower‑carbon, locally produced option that supports mobility and energy security.