Fuel price rises: French state records €270m tax surplus in March

The French government collected €270 million in additional fuel taxes in March 2026 as a result of the conflict in the Middle East.

However Delegate Minister for Public Accounts David Amiel said the increase was far outweighed by the billions lost nationally due to the economic impact of the war. He confirmed the extra tax windfall to public service broadcaster FranceInfo on April 3.

It comes after sustained calls from opposition parties and fuel industry leaders to slash duties - as has happened in Italy where the state has brought in a 25c per litre reduction.

However, an expected reduction in fuel sales, as drivers attempt to cut vehicle usage, may see April’s revenue drop below last year’s figures, cancelling out the March windfall.

Where did the money come from?

An additional €120 million was collected via VAT from fuel sales in March 2026 compared to March 2025, Mr Amiel said.

French VAT on fuel sales remained locked at 20% on top of the final price, despite calls for it to be reduced or temporarily halted. 

This variability means more revenue is collected as prices increase, hence demands for a reduction.

In addition to this gain, a further €150 million in TICPE (a fixed tax on energy sales) was raised compared to usual for the month.

Although this is a fixed tax, with rates of €0.61 per litre for diesel sales and €0.67 per litre of petrol sales, a spike in overall fuel sales led to the windfall, as significantly more fuel was purchased by drivers looking to stock up before price hikes. 

Tax windfall masks further issues 

Opponents may point to the windfall as evidence that taxes should be dropped, however a drop in fuel sales at the end of March is expected to continue into April, seeing a drastic drop in revenue from both the TICPE and fuel VAT.

Indeed, the TICPE increase was “very concentrated at the beginning of March,” Mr Amiel said, and dropped off considerably by the end of the month. 

Furthermore, the increase is almost entirely wiped out by financial aid already promised by the government. 

“€130 million [just under half of the windfall] has already been announced to support the sectors and French citizens most in difficulty," said Mr Amiel. 

Of this; "€70 million to support transporters, fishermen, and farmers, and €60 million to strengthen the chèque énergie [energy voucher]” he added, although recent negotiations between logistics unions and the government over increased aid mean “these figures will be refined in the coming weeks.”

This also does not take into account the wider economic impact of the rising prices, including reduced business or profits for companies.

The additional taxes “amount to millions, whereas the cost of the crisis is in the billions of euros,” said Mr Amiel. 

For example, the state has already paid €3.6 billion in interest on its debts so far in 2026, a higher than expected sum due to higher global interest rates on debt since the outbreak of the war, he added.