France's finance bill, presented on Wednesday, authorizes the region to increase the regional fuel tax (TICPE) to up to 1.65 cents per litre on diesel, and 1.77 cents per litre on gas.
This will make fuel taxes in Ile-de-France the highest in the country.
Money made from the tax hike will go straight to the regional transport authority (Stif) up to a maximum of €100 million, with any further cash going to the state coffers.
The move was first announced by Stif in June in order to combat the deficit created from the Navigo transport passes, which switched to a single monthly price earlier this year. The price rose from €70 to €73 in August, but the transport authority estimated it would still face a €300 million deficit, Le Parisien reported.
"We have no choice,” said a spokesperson for Valérie Pécresse, president of the region. “We have to do it; the accounts of the regional transport authority cannot be unbalanced."
But drivers in Paris and the surrounding area are unlikely to be happy with the change.
The new law means motorists will be doubly hit by price hikes; as well as the rise in tax, they also face rises due to the global increase in oil prices.