France's Controversial Proposal to Cap Fuel Profit Margins Sparks Outcry

The French government's proposal to cap profit margins on transport fuels has been met with strong opposition from the distribution industry. The draft decree seeks to limit fuel distributor profits but has drawn criticism as potentially forcing distributors to sell at a loss and not addressing oil companies' profits.

In a move aimed at curbing fuel prices, France's government has proposed capping profit margins at service stations, a proposal that has already sparked backlash among fuel distributors.

The draft decree would fix prices to ensure distributors don't exceed profit margins from earlier in the year, drawing criticism for potentially forcing them to sell at a loss.

Industry leaders argue the measure would unfairly target their sector while leaving oil companies largely untouched, amid ongoing disruptions in the oil market due to geopolitical tensions.

(With inputs from agencies.)