French profit margin cap criticised: what are other EU governments doing to reduce costs?

The French government’s latest proposal of a cap on service station profit margins as a way to cap fuel prices has been widely criticised by sector leaders. 

Industry heads point to a lack of profit due to higher prices for raw materials, and argue the measure will not translate to a drop in per litre costs at the pumps. 

France remains steadfast that it will not introduce fuel tax cuts nor price caps, arguing it does not have the necessary budgetary flexibility.

However, critics point to a myriad of alternative options introduced across Europe by other EU countries.

The graphic below shows some of the measures introduced, ranging from maximum prices, fuel tax cuts, VAT reductions, and even fuel rationing to limit price hikes.

In the UK, no measures to reduce fuel costs have been announced, although shortly before the start of the conflict the government did prolong a 5p per litre cut to fuel duty until August 2026. This was first introduced in 2022. 

No measures have been introduced in the US, however there are discussions to cut fuel taxes.