Energy crisis: protecting people in the long term

As the Americans would say, 2026 feels like a case of ‘déjà vu’… petrol prices are skyrocketing, against the backdrop of war. And the governments will very quickly find itself under pressure to come up with solutions. While short-term fixes will be tempting, structural solutions are needed to protect people once and for all, and particularly those on low incomes, from recurring spikes in oil prices. Lessons learned the hard way from France. 

France, autumn 2021: faced with a sharp rise in energy prices, the French government announces a package of emergency measures within a few months to protect households and businesses. Cost to the public finances from 2021 to 2024: nearly €100 billion, including €10 billion for aid directly linked to rising fuel prices alone. 

France, March 2026: faced with a sharp rise in energy prices, questions about what the government should do are resurfacing. And whilst the French local elections partially overshadowed the search for solutions to the price crisis until last week, the French government will need to stand firm in the coming weeks. Particularly on the urgent issue of oil. 

No discount at the pump 

2022 was the year of the pump discount in France, and in many other Member States. In the absence of preparation, resorting to such a measure made political sense: immediate implementation; via an existing distribution channel; and visible assistance with every fill-up. 

But this discount suffers from the same three flaws as a generalised reduction in fuel taxes. Inefficient, it benefited many households that had absolutely no need for it. A drain on public funds, it cost France €8 billion in 2022. Disastrous for sovereignty, it further trapped the country’s economy in its costly dependence on imported oil. 

Imperative in 2026, for all the EU Member States: reserve any pump discount or similar measure solely for low-income households with no alternative, and set a time limit on it. The European Council, in its conclusions on March 19, called on the Commission to present a toolbox of targeted temporary measures to address the recent spikes in the prices of imported fossil fuels.  

Energy sufficiency 

Now, however, is the time to implement an energy sufficiency plan, as France and other EU Member States did in 2022. First, individual energy sufficiency, which can be implemented immediately, at least for those who have the means to do so: carpooling, driving more slowly to reduce fuel consumption, using public transport, cycling, and working from home. 

Collective energy sufficiency next, which can be implemented in the short term. By developing public transport, and more broadly by promoting alternatives to single-occupancy car use: utilising existing road infrastructure with cycle lanes or express bus lanes; using the current vehicle fleet to develop carpooling routes; developing on-demand transport with electric vehicles; and reducing speed limits. Local authorities will be key in implementing this collective aspect. 

Going electric 

Finally, let us remember that the problem with petrol prices at the pump… is petrol itself. Now is the time to switch to electric. A household with an old combustion-engine vehicle that buys an electric vehicle on credit saves around ten euros a month. Immediately. The millions of households that have already switched to electric are, in fact, largely spared by the rise in fuel prices. 

For low- and middle-income households, the high initial cost of an electric vehicle is a barrier. In France, social leasing has already enabled 100,000 low-income households to acquire one in 2024 and 2025. Expanding similar schemes across more EU Member States would provide permanent protection for more households, at a minimal cost. In the case of France, protecting a further 200,000 households each year would cost €1.6 billion per year – equivalent to a widespread discount at the pump of just 3 cents per litre. 

And for households unable to benefit from the scheme immediately, targeted, time-limited support with priority access to future leasing schemes. A way of preparing for the transition ahead. And of revealing latent demand to car manufacturers, as a prelude to ambitious electrification plans led by Member States.