French oil firms oppose Paris’ plan to reduce profit margins

French oil companies sent a letter Wednesday to Prime Minister Sebastien Lecornu requesting that Paris abandon a plan to reduce profit margins of fuel distributors, which was put forward due to the rise in gas prices amid the US–Israel–Iran war in the Middle East, according to news outlets.

Oil firms in the country called the government’s plan unfair and unenforceable, demanding that energy-saving certificates aimed at lowering pump prices be reduced, it said.

⁠The government’s plan was to implement a legal regulation to bring gas prices at the pump under control by limiting the profit margins companies can make from the fuel crisis triggered by the Middle East war.

French opposition leaders accused Paris and oil firms of profiting from the Middle East gas crisis.

The €70 million ($82.5 million) aid package Paris announced at the beginning of the month to counter rising fuel prices was deemed insufficient, as transport, fishing and agriculture workers continue to protest nationwide.

The de facto closure of the Strait of Hormuz due to the conflict led to a massive energy market crisis as the vital waterway facilitates the transport of Middle Eastern oil and liquefied natural gas.

*Writing by Emir Yildirim in Istanbul