France: fuel prices capped by decree

The situation with fuel prices and derivatives, which seems unsustainable in Spain, is no less so on the other side of the border. As an example, in recent weeks the average price of a litre of diesel reached a record 1.4592 euros, according to data from the Ministry of Ecology and Energy.

Faced with this scenario, the government has decreed a price cut thanks to an agreement it has reached with the oil companies, which have committed to lowering fuel prices by up to six cents; for its part, the government of François Hollande has committed to an equal six-cent reduction in the taxes levied on fuel. The government’s decree states that this controlled price drop will begin today.

Of course, this does not mean much for the motorist when paying at the petrol station. For every 25 litres of petrol, the consumer will save 1.5 euros. It is not much, but it is something, although I honestly do not know how much it will help offset the falling fuel consumption that our neighbours are experiencing.

And, like Spain, France is one of the countries that load the heaviest taxes onto fuel; 60% of the value of petrol and diesel goes entirely on taxes. Despite the similarities, we cannot celebrate victory here, with a general increase on the way, thanks to the “brilliance” of the VAT rate rise that is about to take effect.

Source | Autopista