Millions of French motorists will be given EUR100 (GBP84) to help them cope with rising fuel costs.
French Prime Minister Jean Castex announced the one-off grant would be given to about 36 million people who earn less than EUR2,000 a month.
Speaking to TF1 television, he described the move as “an exceptional response to an exceptional situation”.
The grants, which will be given to groups including the self-employed, jobseekers, and retired people, will be handed out from December.
France’s President Emmanuel Macron is due to run in the country’s presidential election in April but public anger has been growing among citizens facing the dual challenges of recovering from the coronavirus pandemic and paying increasing fuel costs.
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Last month, the French government promised EUR100 for about six million poorer households struggling to pay energy bills.
The rise in fuel prices has hit many countries, including the UK, where the Petrol Retailers Association has warned that motorists could soon face prices not been seen since April 2012.
Average prices hit 141.35p for petrol and 144.84p for diesel on Tuesday in the UK – approaching the 2012 highs of 142p and 148p respectively.
No grants have been proposed for motorists in the UK.