A boost for all French people. Faced with soaring fuel prices, Jean Castex announced in an interview with ParisianSaturday, March 12, a “discount at the pump of 15 centimes per liter”. This measure will apply from April 1, for a period of four months. Franceinfo answers three questions about its implementation.
How will this discount work?
The prices of all fuels, and in particular diesel, have been rising continuously for more than two months in France. A liter of diesel was worth 1.8831 euros in the first week of March, but prices are now well over 2 euros at many service stations. To respond to this outbreak, the government has therefore decided to set up a “discount at the pump of 15 centimes per litre”. Thereby, “for every 60 liters you will save 9 euros”illustrated Jean Castex.
This measure, which will cost the State around 2 billion euros, concerns both households and businesses, the Prime Minister said in his interview with Parisian. The objective is to help all French people, in particular those who use their vehicle the most. “UA self-employed nurse, who travels a lot of kilometers per month, filling up every week for example, will in fact benefit more from this ‘delivery’ than an individual who only goes to the pump once a month”highlighted The Parisian in another article.
It will also apply to “all fuels including crude”, which only excludes E85, the Prime Minister’s Office explained to the daily. The discount will not be visible on the prices displayed at the entrance to the stations but it will be made at the time of payment, at the cash desk or by credit card at the pump. “All technical arbitrations” on this point “have not yet been delivered”, said Matignon. The objective, however, is for the discount to be automatic, in the 11,000 stations in France.
The State will then reimburse this rebate to the distributors. On Saturday, Jean Castex asked them, like oil tankers, to “make a complementary gesture” in favor of consumers. “How would the French understand that they pay a full tank of diesel at 2 euros, while at the same time the oil companies are still making big profits? noted the Prime Minister in his interview with Parisian. If the state makes an effort of 15 cents per liter, and if they make an effort of 5 cents, for example, it is indeed 20 cents that must end up in the pocket of the French.
Why will the measure only come into force in April?
With this discount, the government wants to respond quickly to soaring fuel prices. But distributors had to be given time to organize themselves for the application of the measure, explains the executive to the Parisian. Consequently, it will only enter into force on April 1st and will be valid until July 31st.
In the event of a drop in prices during this period, Matignon will reconsider this discount, according to AFP. However, this scenario is considered “unlikely” by the executive. The rise in oil prices indeed began several months ago, production not arriving not keep pace with the strong global economic recovery, and it was accentuated by the war in Ukraine.
Why hasn’t the government decided to lower fuel taxes?
The consumer association CLCV welcomed on Saturday a “concrete answer” of the executive to the rise in prices, but regrets that we have to wait until April 1 for its implementation. The general delegate of 40 million motorists found the gesture “just normal” because “the State is currently reaping VAT revenues that exceed the planned budget”. The Association of Rural Mayors of France reacted in a similar way on Sunday, calling for a reduction in VAT on fuels to 5.5% to bring down prices at the pump.
Jean Castex however explained the day before that the government had ruled out a reduction in fuel taxes, which would require a law and “would take longer”. “Less taxing polluting energy would send the wrong signal, again justified the Prime Minister to the Parisian. Moreover, if you lower taxes, you never raise them. He pointed out that “this discount helps everyone, including professionals who are exempt from taxes”.