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France’s 2026 Budget Plan Moves to Curb E85 and B100 Tax Breaks, Threatening Cheap Biofuel Prices

Parliament is set to review the measure with implementation possible in 2026.

Overview

  • The draft budget proposes phasing down the fiscal advantage for E85 and scrapping the special tariff for B100 as part of a wider review of 474 tax niches, with 23 slated for removal.
  • Industry groups warn E85 could rise from about €0.71 to roughly €1.20 per litre, while 40 millions d’automobilistes projects a €0.40–€0.50 increase over three years.
  • More than one million drivers use E85 in France and around 400,000 vehicles have conversion kits, while B100 is primarily used by professional transport operators.
  • Motorists’ and farm groups including 40 millions d’automobilistes, FNSEA and SNPAA denounce the plan as harmful to purchasing power and say they will push amendments in Parliament.
  • Backers tout E85’s 30–50% lower greenhouse gas emissions versus petrol, but environmental associations question the broader impacts of feedstock agriculture.