PRICE OF PETROL. Invited on the set of BFMTV this Monday, May 27, the Minister of the Economy Bruno Le Maire plans to request a new effort from Total on fuel prices.
[Mis à jour le 27 juin 2022 à 10h23] This Monday, June 27, the Minister of the Economy Bruno Le Maire was invited on the set of BFMTV to support the next government measures concerning purchasing power, and the fight against the galloping inflation of which low-income households are victims ( 5.2% in May over one year). In particular, he announced that he wanted to ask Patrick Pouyanné, CEO of TotalEnergies, to make a new effort on the prices of fuel (after the first discount of 10 cents per liter applied in all Total petrol stations: “All the effort cannot be based on the State and public expenditure (…) I am going to ask the President of Total Patrick Pouyanné to make another effort because the price of fuel remains very high. Can he lengthen it? Can he increase it? The effort must be fairly distributed“.
No respite for motorists! If the establishment of the “rebate” of 18 cents by the government at the beginning of spring had an effect on prices at the pump, fuel prices have risen again. Since the beginning of June, it has even been downright overheating with recorded average prices which have cheerfully crossed the bar of 2 euros per liter. Monday, June 13, according to the latest statement from the Ministry of Ecological Transition, the average prices for a liter of unleaded 95 in France were 2.096 euros per liter against 2.0694 euros per liter of diesel. For comparison, here are some figures that reflect the evolution of prices in recent weeks:
- Monday March 28: 1.89 euro per liter of diesel and 1.78 euro per liter of unleaded 95
- Monday, April 25: 1.88 euro per liter of diesel and 1.76 euro per liter of unleaded 95
- Monday, May 16: 1.85 euro per liter of diesel and 1.93 euro per liter of unleaded 95
- Monday, May 30: 1.96 euro per liter of diesel and 2.06 per liter of unleaded 95
The reason ? The international context, especially with the sanctions taken against Russia following the start of the war in Ukraine. The European Union has opted for a gradual boycott of Russian oil, which leads to an increase in demand for oil from other regions, in particular the Arabian Peninsula, and ultimately in prices. Oil prices have steadily crossed the $100 per barrel mark since the beginning of March.
What prices for vacation departures?
Will the price of fuel stabilize as summer approaches and before the big vacation departures? 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 has created a number of questions, especially for holidaymakers since August residents should therefore not benefit from the 15 centimes/litre discount, unlike July residents. On the side of the executive, it was already whispered in the spring that the device, very costly for public finances (3 billion euros over 4 months), was not necessarily intended to be extended. However, in an interview with the regional press before the first round of the legislative elections, Emmanuel Macron had confirmed an extension of the device in August. “There must be visibility for our compatriots. I’ll give it to you”, replied the President of the Republic to this question, before then mentioning the replacement of this aid by a “more targeted” device aimed ” the big rollers this fall”.
A first step has also been taken in this direction. Some professions have a little extra help: contracted health professionals. Dentists, nurses, physiotherapists, doctors, speech therapists or 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.
In addition to moderating your travels, practicing carpooling if you can, the best thing is still to compare the prices charged in the service 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 site, 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, finances only “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.