Discount of 15 cents per liter of fuel: for whom, when and how?

To help the French with rising fuel prices, the government has announced a 15 cents per liter discount. (©Vincent Malboeuf – HSM)

This is one of the main concerns of the French as the presidential elections approach. And it’s size: fuel prices

the diesel fuelto name it, exceeded 2.14 euros per liter and this increase is very bad for the wallet.

To allay the concerns, Prime Minister Jean Castex announced on Saturday, March 12, 2022: a discount of 15 cents per liter of fuelwhose decree “should appear as soon as possible before being regularized in an upcoming amended finance law”, as specified by Matignon, contacted by news.fr

A boost that concerns all individuals, without means test.

Which fuels are involved? How will it work? † How much will it cost? We make an inventory.

How is the discount applied?

First of all, you should know that this discount is not displayed on the terminals. The usual prices will remain, however high they may be.

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This discount of 15 euro cents per liter will be automatically debited upon payment, subsequently reimbursed by the State to filling stations. So no bonus, or inflation compensation.

If the liter of diesel is displayed for 2.14 euros, as is the case on average this Tuesday, March 15, 2022, in the end it costs “only” €1.99† So a full 50 liters costs 99.5 euros instead of 107 euros

And why is the discount not directly on the terminals? “So that it is visible, and that motorists take into account the selling price, which by definition will be different from the purchase price,” replies the Prime Minister.

From when ? And until when?

The reduction must begin from 1er April and last four months† So it will no longer be in effect from 1er August.

The April 1, a little over two weeks after the Prime Minister’s announcement, may seem late.

It is due to the fact that “all suppliers, and their 11,000 service stations in Franceneed time to get in order to cover the whole territory, condition sine qua non so that all French people, also abroad, can benefit from this measure,” says Jean Castex’s cabinet.

“The implementation of the system with this discount is very complex,” confirms the French Union of Petroleum Industries (Ufip), together with news.fr

And why a discount in this format?

This decision was made exactly for the purpose go as soon as possible

A new inflation allowance or a cut in fuel taxes would have to call parliament and pass a law, which would take many months.

the Prime Minister’s Office

In addition, lowering taxes such as the TICPE, which represents about 40% of the total price of a liter of fuel, would raise equality issues. “Some professionals wouldn’t have worried because they are exempt from certain taxes,” the office specifies.

There, in this case, all professionals are concerned† The entire population will benefit from this reduction.

How will the state finance this aid?

This cut in fuel prices proposed by the state is not free. Jean Castex expects a total cost of 2 billion euros for the state.

Money that comes from tax revenues versus fuels, exactly. “Everything will be returned to the French,” Jean Castex assured the newspaper the Parisian

Which fuels are involved?

It concerns all fuels‘ emphasizes the Prime Minister’s office. However, Ufip indicates that E85, also called superethanol or bioethanol, is not on the list.

In contrast to, all other fuelswill see their price per liter drop by 15 cents at checkout.

The problem of fuel oil does not seem to have been regulated yet. Accompanied by news.frAfter a meeting at the Ministry of Ecology Transition on Tuesday, March 15, 2022, the French Federation of Combustibles, Fuels & Heating (FF3C) told us that “public authorities neither confirm nor ‘disprove’ that the measure will benefit consumers of domestic heating oil.

And after July 31?

As Matignon explains, “this measure is transientthe time to set up a more targeted system”.

But when the deadline has passed and the 15 cents per liter discount no longer applies, what will motorists do?

The government is working to set up a system to support benefit recipients in an appropriate way, in particular in relation to their income level, their professional activity and the number of kilometers they travel each day.

Matignon office

So patience…

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