PRICE OF PETROL. The government rebate of 30 euro cents per liter of fuel came into effect, as well as the 20 euro cents rebate from Total came into effect on September 1, 2022. What are the effects on prices?
[Mis à jour le 14 septembre 2022 à 14h24] Fuel prices fell in service stations on Thursday, September 1, 2022. This drop was due to the increase in the government discount on the liter of fuel, increased from 18 euro cents to 30 euro cents. With this exceptional rebate from the State, the price of the SP95 fell on average to 1.78 euros and that of the SP95-E10 to 1.73 euros on 1 September.
What about two weeks later? According to the official government platform, the average liter of diesel was 1.50 euros per liter for unleaded 95 and 1.75 euros per liter for diesel. In addition to this rebate from the State, motorists can benefit from an additional rebate at Total Energy stations. The energy giant indeed grants 20 euro cents reduction per liter of fuel. With this commercial gesture, Total’s prices are around 1.40 euros for a liter of Unleaded and 1.70 euros for diesel. Please note that fuel discounts will not continue. From November 1, the State rebate and the Total Energy gesture will drop to 10 cents per liter of fuel. At the end of 2022, these aids will be withdrawn.
What are the average fuel prices in France?
Monday August 29, according to the latest statement from the Ministry of Ecological Transition, the average prices for a liter of unleaded 95 in France were 1.7392 euros per liter against 1.9488 euros per liter of diesel, that is about 11 cents more than the previous week for diesel and one cent for petrol. Still, since Thursday, September 1, you have to rely on the increase of 12 cents of the fuel discount and the discount of 20 cents at Total stations. 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
- Monday, June 15: 1.96 euro per liter of diesel and 2.066 per liter of unleaded 95
- Monday, July 4: 2.13 euros per liter of diesel and 2.03 per liter of unleaded 95
- Monday, July 18: 1.96 euros per liter of diesel and 1.9504 per liter of unleaded 95
- Monday, August 29: 1.9488 euros per liter of diesel and 1.7392 per liter of unleaded 95
- Monday, September 12: 1.75 euros per liter of diesel and 1.50 euros per liter of unleaded 95
The reason for the price hike? 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.
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 refer to 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 the higher prices, which occasionally 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 three cents more to the price of a liter of diesel and six cents to the price of a liter of Unleaded. 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.