Yellow vest movement resurgence likely in January

Yellow vest movement resurgence likely in January

The French government's fuel price rebate was reduced by a third in mid-November and will be phased out in January. Opposition politicians warn that the anti-government yellow vest movement could swing into action again. The government plans to introduce new, more targeted support from January, but the premier has not yet disclosed details.

ECONOMY WORLD POLITICS NOVEMBER 19. 2022 07:30

The recent explosion-like inflation in France has also had an impact on fuel prices, which the government has sought to alleviate by offering a 30 euro cent per litre discount on the price at each refuelling. The measure came into force on 1 September and the concession lasted until 15 November. From 16 November, the price reduction has decreased from 30 cents to 10 cents. This discount will last until 31 December and be phased out from January, according to the Journal Officiel, the official newspaper of the French Republic. The discount applies to all types of fuel, including fuel used in vehicles not used for road transport, and is available to everyone, individuals and businesses alike.

However, this subsidy will end in January, leading the French leadership to fear a resurgence of the yellow vest movement, notorious for its anti-government actions. Several opposition politicians have warned the government of the possibility. One of them is Christophe Bex of the Unbowed France party, who was himself a member of the yellow vest movement that started four years ago. The leftist politician asks for two things from the French government regarding fuel prices: a cap on prices and a general wage increase.

Right-wing parties are also of the opinion that eliminating the rebate will result in serious tensions in society. Kevin Mauvieux, an MP of the National Rally party said that by cancelling the discount, the government puts millions of French people living in the countryside in a difficult situation. The fact that people stood in queues for up to 45 minutes at petrol stations on the last day of the higher discount to save 20 cents more per litre, clearly illustrates the difficulties of the French population, the opposition politician wrote on Twitter.

With the cancellation of the rebate in January, the price of fuel will most probably surpass the psychological threshold of 2 euros per litre, and it may cause difficulties for many. The government is aware of this, so Elisabeth Borne told economic paper Les Échos that they are planning to introduce a so-called „employees’ fuel benefit” which would provide help to those commuting to work by car. The measure would be applicable for about half of French households, with those eligible receiving the payment from the beginning of next year, Ms Borne said.

In her statement, the French prime minister mentioned that the government will strive to assist companies in paying for their energy bills, but disclosed no further details about either that or the employees’ fuel benefit which is to be introduced in January. She added that the idea of a European-level price cap on gas is also on the table, but negotiations on this front are progressing at a sluggish pace.

 

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discount, elisabeth borne, france, fuel prices, yellow vests