France to help drivers stave off cost of soaring fuel prices

French Prime Minister Jean Castex has announced that compensation for work-related transportation will be "raised by 10 percent" so drivers can better cope with the rise in fuel prices.

The fuel price at the pumps in France keeps on rising © AP / JPP

Over the past years, fuel prices have seen a steep rise. Combined with plans to increase fuel tax, they were one of the principal causes that triggered the Yellow Vest movement, where protesters gathered on a weekly basis in increasingly violent demonstrations.

President Emmanuel Macron already pulled out the government cheque book to try and help poorer citizens cope with rising inflation, singling out some 38 million people who received a €100 payout.

Prix du carburant: Jean Castex annonce que "le barème de l'indemnité kilométrique sera réhaussé de 10%" pic.twitter.com/y8Nec7Efyx

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Eligible public officials will receive their compensation when they are paid at the end of January.

One month later, 12 million pensioners will also benefit from the premium.

Some six million households already received an €100 energy cheque in December, while the govenrnment put a cap on increasing gas prices and limited the increase onf electricity to 4 percent.

However, French economy minister Bruno Le Maire ruled out a 5.5 percent VAT reduction on fuel.

"This is not a solution," he argued, because such a measure would not just benefit "those who need it most" and would "cost billions".