French Prime Minister Sebastien Lecornu announced Wednesday that the government will release 10 million barrels of diesel from its strategic reserves to lower prices at fuel pumps. The decision was made as high school and college students across the country held protests, citing underfunding in the education system.
In a televised address on Oct. 7, Lecornu stated the release of the diesel stockpile would be done at cost price, which he projected would reduce fuel costs for consumers by 12 to 18 euro cents per liter. He acknowledged public “fatigue” over a series of crises, adding that the anger of protesters “did not come out of nowhere.”
The move follows a broader agreement by the Group of Seven (G7) nations last week to release 100 million barrels of reserves. According to market reports, global prices for refined oil products have been affected by disruptions in the Middle East and Ukrainian strikes on Russian refineries.
The fuel price measure comes during a week of nationwide student demonstrations referred to as “semaine noire,” or “black week.” Protesters have blocked access to numerous schools in Paris and other cities. Demonstrators have stated their actions are in response to years of underinvestment that they say have led to overcrowded, under-resourced, and understaffed educational institutions.
During clashes between police and protesters earlier in the week, a 15-year-old boy sustained a severe hand injury. Following the incident, the government suspended the use of stun grenades by police forces.
The protests coincide with the government’s efforts to pass a budget that includes approximately €43 billion in spending cuts. Lecornu’s government does not hold a majority in parliament, creating challenges for passing the proposed budget.
The government is also facing pressure from financial markets. The yield on France’s 10-year government bonds has risen by approximately 1.26 percentage points this year, reaching its highest level since 2002. The risk premium on French debt compared to German bonds has also widened. On Thursday, the yield on the French 10-year bond was trading around 4.9%.
“Making these decisions today, sharing the burden fairly, will help avoid far more drastic measures down the line,” Lecornu said, urging parliament to find a compromise on the budget. He reiterated the government’s goal to reduce the public deficit to 5% by 2027 from its current projected level of 5.4%.
Political opponents have commented on the government’s fiscal policy. Marine Le Pen, a leader of the National Rally party, stated in a speech this week that her party would lower the deficit to below the 3% threshold within 18 months if in power.
