PRICE OF PETROL. Has the 18-cent discount on the price of fuel had an effect on the prices displayed at the pump? While the government announces an extension of the measure for certain professions, the end date of this discount is already creating controversy.
[Mis à jour le 26 avril 2022 à 10h16] The price of fuel will it stabilize with the approach of summer and before the big departures on vacation? The rebate of 18 cents on the price of a liter of fuel, introduced by the government on April 1, must end on July 31. This end date is already creating a number of questions, especially for holidaymakers since August residents should therefore not benefit from the 15 centimes/litre discount, unlike July travelers. On the executive side, and pending the establishment of a new government, it is whispered that the system, which is very costly for public finances (3 billion euros over 4 months), has not necessarily destined to be extended. It could be relayed by another device, more targeted for low-income households and having to accumulate kilometers for their professional needs.
A first step has also been taken in this direction. Some professions will have a little extra boost in the coming weeks: contracted health professionals. Dentists, nurses, physiotherapists, doctors, speech therapists and even midwives will be concerned via an extension of the reimbursement of mileage costs by Health Insurance. In concrete terms, they will benefit from a discount of an additional 15 centimes per liter via the reimbursement of these costs. Again, the discount will be temporary and should end on July 31, 2022.
Implemented on April 1, does this discount on the price of fuel decided by the government have an effect on prices at the pump and reduce the surge in prices observed by motorists? The answer is either: the introduction of the discount of 18 cents coincides well with a (small) discount on the price of a liter of unleaded such as diesel. While the price of a liter of fuel had passed the symbolic bar of two euros/litre, it has since stabilized: 1.891 euro on average for diesel at the beginning of April then 1.82 euro per liter the week of April 10, 1, 81 euro in week 15.
Attention, the liter of diesel has increased again, recovering six cents in one week to point to 1.87 euros according to the last statement of April 22, 2022. Same thing for gasoline with a price of unleaded 95 E10 which is fell in one month from 1.96 euros on average to 1.74 euros/litre as of April 22, 2022 (source: statement sent by the Ministry of Ecology). Is the fuel discount the only reason for this discount? No, since the price of a barrel of oil also fell after a vertiginous rise in the first days following the outbreak of the war in Ukraine. After having exceeded 122 dollars at the beginning of March, the prices of Brent and barrels have melted on the market, placing themselves around 100 dollars while remaining well above the prices posted in recent years.
In addition to moderating your travels, practicing carpooling if you can, the best thing is still to compare the prices charged in the gas stations around your home. Tedious? Not that much since many sites offer this service on the internet. You can also base yourself on the official government website, combustible.gouv.fr, which offers to find the prices that must be indicated to the State by the managers of service stations.
Our partner Essence&Co also offers this service via collaborative data provided by Internet users. You can find the search engine below. It is possible to compare fuel prices at service stations near you. Available on Android or iPhone, it offers daily fuel prices based on user feedback to indicate current prices.
The government websiteprice.fuel.gouv.fr” also offers you price statements by department and type of fuel (Be careful to clearly differentiate unleaded 95, 98 or E10). The price statements are updated on a weekly basis. What will help you find the cheapest gas stations through an interactive map listing the gas stations near you.
As you have noticed, there are sometimes sometimes substantial price differences depending on the service station: between distributor brands (supermarkets in particular) and oil group stations, the difference can sometimes seem significant. It is explained by various parameters including the brand image but also the famous additives. You may know them by their trade name. Excellium fuel, for example in the Total network, contains many additives. Incorporated into the fuel, they are used to improve its quality and therefore its performance. Also intended to protect the engine or the tank, they also act on higher prices, which sometimes gives rise to controversy over their usefulness. Marketing argument used to justify these prices or real benefit for the car, the debate is lively.
What is the share of taxes in the price of gasoline at the pump? According to Total, taxes represent “the most important part of the price of fuel”. In 2018, according to the company, the taxes collected by the State represented for example “63% of the price of Unleaded 95-E10 and 60% of that of diesel”. Gasoline tax is in fact divided into two different taxes: VAT, and the domestic consumption tax on energy products (TICPE). There is also the general tax on polluting activities (TGAP). The TICPE is also higher on gasoline than on diesel. Depending on gasoline prices, the TICPE represents nearly 70 cents on gasoline, 60 cents on the price of a liter of diesel.
The carbon tax is a tax on CO2 emissions. It was implemented in 2014. It was to increase on January 1, 2019 and add 3 cents more to the price of a liter of diesel and 6 cents to the price of a liter of lead-free. Nothing happened: the government decided to cancel its increase when it could have brought 3.9 billion euros in additional revenue to the State. This decision follows the discontent of the yellow vests at the end of 2018. Note that the carbon tax, a component of the TICPE, only finances “very little” the ecological transition.
According to a Senate report on revenue for 2016, “out of the 4 billion euros of additional revenue expected from the carbon component in 2016, 3 billion euros are returned to companies under the tax credit for Competitiveness and Employment (CICE), and 1 billion euros for households, through reduced VAT rates applicable to energy renovation work on housing and in favor of social housing and intermediate housing”. For the Senate, the increase in the carbon tax therefore results from a “logic of budgetary return” and is not particularly used to finance the ecological transition.