Some fuel prices could soar: for cars, a strengthened CO2 fine and an increase in taxes on E85 in the 2026 budget

The Finance Bill 2026 provides for several measures to tackle polluting vehicles. In this way, the threshold for applying the CO2 penalty will be reduced with an announced trajectory over the next three years.

Up to 100,000 euros fine for CO2 in 2028

In 2026, this surcharge will affect new vehicles from 108 g/km of CO2, compared to 113 g/km in 2025. This threshold will be reduced to 103 g/km in 2027 and to 98 g/km in 2028.

“An important signal is sent to the market to turn towards less polluting or 100% electric vehicles,” emphasizes the NGO Transport & Environment in a statement.

The maximum limit of the penalty will also be increased: currently, vehicles that emit more than 194 g/km of CO2 must pay a surcharge of 70,000 euros. It will be 80,000 euros in 2026 above 191 g/km, then 90,000 euros in 2027 above 189 g/km and 100,000 euros in 2028 for CO2 emissions greater than 187 g/km.

Above all, this penalty can now be combined unlimitedly with the weight penalty, while the sum of both could not until now exceed the maximum amount of the CO2 penalty, i.e. 70,000 euros. A scale of the weight penalty (or “mass penalty” or “Tax on the curb mass of passenger vehicles”) that remains unchanged.

Increase in tax on E85

The Government also plans to increase taxes on E85 from 2026. An economical fuel that has enjoyed great popularity in recent years, with conversion boxes or some directly compatible models.

“The plan to increase the taxation of E85 from 2026 – which could take the form of a gradual reduction over 3 years of the tax advantage due to its current very attractive price (0.71 euros/liter on average), resulting in a final increase of 40 to 50 euro cents per liter – raises fears that the State will seek less to promote more sustainable fuels than to increase its income, defying social justice,” reacts the association of 40 million motorists in a press release.

For its part, Transport and Environment is more favorable to this measure, as well as to the elimination of the tax advantage for B100, a biofuel compatible with diesel engines of heavy vehicles.

“Aligning the taxation of biofuels (B100, E85) with the traditional regime is good news, given the absence of climate benefits derived from these fuels,” the NGO emphasizes.