Around 18% of French gas stations currently facing fuel supply shortages

NANTES, France - Around 18% of French petrol stations are currently facing fuel supply shortages, the government said on Tuesday, while rising prices at the pump prompted some drivers in western France to block a road in a sign of rumbling discontent.

As the U.S.-Israeli-led war on Iran enters its sixth week, a supply crunch on oil deliveries has led to a surge in crude and fuel prices in many parts of the world.

Junior Energy Minister Maud Bregeon said the shortages in France were only due to internal logistical problems and not related to fallout from the war. She said a decision by French oil major TotalEnergies TTEF.PA to freeze fuel prices, keeping them below those of their rivals, had led drivers to rush to fill up at Total stations, straining supply.

Total said on Tuesday it was maintaining a ceiling of 1.99 euros/litre for unleaded petrol in April but increasing the cap on diesel to 2.25 euros/litre, bringing its diesel prices closer in line with other retailers. It said its diesel price cap would be lower for its retail electricity and gas customers.

France has opted for support measures to ease the impact of surging oil prices, targeted at the sectors most in need. They include over 70 million euros ($80.91 million) in fuel subsides for the transport, farming and fishing industries for April, additional benefits for low-income households to help pay energy bills and loans for small businesses.

The country has yet to experience anything like the 2018-19 Yellow Vests movement, when a hike in diesel taxes sparked nationwide protests that morphed into a months-long public revolt against President Emmanuel Macron's leadership.

Nevertheless, some truckers and drivers set up a roadblock in Nantes, western France, on Tuesday to highlight their concerns.

"If things don't change, I'm afraid — we're all afraid — I fear a wave of layoffs in the coming months. It's becoming very difficult for some companies," said Charlotte Lucas, an entrepreneur involved in construction projects.

"We already had terrible weather at the beginning of the year. And now we have this problem with rising diesel and non-road diesel prices. That's having an impact on our cash flow, which isn't exactly abundant right now," she added.

($1 = 0.8651 euros)

-Reporting by Inti Landauro and Stephane Mahe;Editing by Sudip Kar-Gupta, Gabriel Stargardter and Susan Fenton/Reuters