PARIS, May 21 (Xinhua) -- The French government on Thursday unveiled a new subsidy package aimed at helping households and key industries cope with rising fuel prices, with the measures expected to cost around 710 million euros (770 million U.S. dollars).
Speaking at a press conference, French Prime Minister Sebastien Lecornu said the government's priority was to ensure that "the country must keep running," as the situation in the Middle East was unlikely to return to normal before the summer or autumn.
Under the package, support measures for the fisheries and agriculture sectors will be extended for an additional three months. Subsidies for low-income workers who commute long distances by car will increase from 50 euros (58 dollars) to 100 euros (116 dollars), while the tax-free ceiling for company-paid fuel allowances will double to 600 euros (697 dollars) annually.
The government will also raise wages for home care workers and increase travel allowances for civil servants.
Lecornu ruled out a broad reduction in fuel taxes, saying such a move would be "very costly" for public finances. He also said the government would not propose tax hikes in the 2027 budget.
French Minister of Economy and Finance Roland Lescure said the French economy was "holding up," adding that oil prices were expected to remain close to current levels through the end of the summer.
According to local media reports, the average price of SP95 petrol in France had climbed to 2.05 euros (2.38 dollars) per litre, nearly 19 percent higher than before the Middle East crisis. SP98 petrol rose more than 17 percent to 2.14 euros (2.49 dollars) per litre.
Diesel, the country's most widely used fuel, remained elevated at 2.15 euros (2.5 dollars) per litre, although below its early-April peak of 2.39 euros (2.78 dollars).
