The European Commission has approved a EUR 212 million (USD 241 million) plan proposed by the French government to alleviate the costs caused by higher fuel prices on the country’s agriculture and aquaculture sectors.
Fuel prices skyrocketed after the United States and Israel launched attacks on Iran, leading the latter to effectively close the Strait of Hormuz – a critical passageway much of the world’s oil must pass through to reach consumers. Oil tankers have once again begun flowing through the strait after the U.S. and Iran signed a tentative deal to end the war, although fragile, intermittent talks between the two sides remain ongoing.
The multiple months of closure, however, limited global fuel supplies and caused prices to jump. According to the commission, non-road diesel fuel prices (GNR) increased 74 percent between February and May, resulting in an additional cost of EUR 0.41 (USD 0.47) over the 2025 average price.
Following calls from commercial fishing groups and government officials, the European Commission approved the Middle East Crisis Temporary State Aid Framework (METSAF) in April. The framework allows governments within the E.U. to offer financial support to their agriculture, fishery, and transportation industries, compensating companies for up to 70 percent of the increase in fuel costs.
Several governments, including Spain, Ireland, and the Netherlands, have already announced aid plans for their fisheries sectors, and the commission previously approved a EUR 13 million (USD 15 million) plan by the French government to help commercial fishers.
Now, the commission has approved a much larger package that will provide aid to France’s agriculture and aquaculture sectors.
“The Commission found that the scheme is in line with the conditions set out in the METSAF,” the commission said in its release. “The Commission concluded that the scheme is necessary, appropriate, and proportionate to facilitate the development of an economic activity and does not adversely affect trading conditions to an extent contrary to the common interest. On this basis, the Commission approved the French scheme under EU State aid rules.”
The French plan will cover the four-month period from May to August, with the government providing direct grants based on the volume of fuel purchased. Companies will be compensated EUR 0.15 (USD 0.17) per liter of GNR purchased during that time.
