The European Commission has signed off on a €212 million French state aid scheme to offset fuel price increases.

The scheme which covers both agriculture and aquaculture is specifically aimed at cushioning the impact of the increase in non-road diesel fuel prices in France because of the Middle East conflict.

The European Commission said today (Monday, June 22) that non-road diesel fuel had increased by 74%, with an average additional cost of €0.41 compared to the average price in 2025.

The French scheme will cover additional costs as a result of the Middle East crisis for fuel purchased during the four-month period from May to August 2026.

The aid will be in the form of direct grants based on the volume of fuel purchased.

Companies can receive 15c/L on non-road diesel fuel purchased from May 1 to August 31, 2026.

The scheme will run until December 31, 2026.

The scheme was approved under the Middle East Crisis Temporary State Aid Framework (METSAF) adopted by the commission on April 29, 2026.

The European Commission had examined the French scheme and decided that it was "necessary, appropriate and proportionate" and it got the green light under EU state aid rules.

Fuel scheme

The commission last week (June 17) also approved the Irish government's €85 million Fuel Income Support Scheme.

Ireland had informed the commission about the scheme to support companies active in the "primary production of agricultural products".

Prices for marked gas oil, known as green diesel, rose from 97c/L in late February to €1.8/L by mid-April.

The commission had noted that the scheme "aims to mitigate the impact of the increase in fuel prices for the peak fuel usage months for the farming sector of March to July 2026".

It also set out that the aid package will take the form of direct grants based on the volume of fuel usage in 2025.

Companies can receive up to 20c/L of fuel purchased during the eligible five-month period.

According to latest figures from the Department of Agriculture, Food and the Marine (DAFM), an estimated 2,000 applications have been made to the scheme by contractors.

Meanwhile based on preliminary analysis 32,417 farmers have applied for the scheme.