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Price of fuel at pumps in France passes €2 per litre

The price of fuel at the pumps in France has passed €2 per litre in many areas of the country, driven by market uncertainty following the Russian invasion of Ukraine.

Price of fuel at pumps in France passes €2 per litre
Motorists queue for fuel at Harfleur, near Le Havre, western France, on March 5, 2022. (Photo: Jean-Francois Monier / AFP)

According to fuel price comparison site Carbu.com, the average price of unleaded petrol on forecourts across France has risen by more than €0.10 in the past week alone and more than €0.18 in a month; while diesel has jumped nearly €0.20 over the past seven days – and over €0.25 in a month.

Check out this interactive map to find the cheapest fuel in France

For many in rural France, where public transport is poor, running a car is essential and the price hikes have already started to make a painful impact on their wallets.

It is expected that fuel prices will continue to rise as the effects of the war in Ukraine and the EU sanctions become more evident, with some predicting prices at the pump of €2.50 per litre.

In January, Prime Minister Jean Castex announced the government would increase financial help for people who drive for work, with a tax break under a scheme known as the indemnité kilométrique, while a one-off €100 ‘inflation payment’ was announced in October and paid out in December to some 38 million people.

But, with the cost of fuel rising, the government is now considering further measures pending a hoped-for increase in production from other countries. 

The 2018/19 ‘Yellow Vest’ protests began as a complaint at the price of petrol, which at that time was selling for well below €2 a litre.

In his first Presidential election rally, Emmanuel Macron promised ‘quick measures’, and hinted at some of the plans that will come into effect as part of the government’s ‘Economic Resilience Plan’ to offset some of the effects of Russia’s aggression in Ukraine.

READ ALSO Macron tells French ‘I will protect you’ from effects of war in Ukraine

“What we need to improve is the support on fuel,” he told the 200-strong audience at a town hall event in Poissy. “There will be a fuel part [in the resilience plan]. It will be strengthened in line with the mileage allowance. It will be worked around the mileage allowance and inflation allowance.”

Prime minister Jean Castex is expected to announce full details of the plan by ‘mid March’.

Tax cuts, demanded by some, have for now been rejected as ineffective. Taxes currently make up about 60 percent of the forecourt price in France – but reducing them would cost the government hundreds of millions of euros, without making a marked difference. Even a simple €0.01 cut at the pumps would cost the government €0.5 billion, Economy Minister Bruno Le Maire claimed recently.

“It is very costly for a result that French people won’t even notice,” he said.

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PROPERTY

What to expect from your 2023 French property tax bills

The annual demands for property taxes have begun arriving at households across France - and many people will notice quite a difference to last year's bill.

What to expect from your 2023 French property tax bills

Every year in September and October the French tax office sends out bills to households across France relating to property taxes – these are separate to income tax bills, which arrive over the summer.

The autumn bills are usually made up of three parts; taxe foncière, taxe d’habitation and the redevance audiovisuelle.

However, system changes to all three parts mean that for some people bills will be be much lower than last year, while others will have nothing at all to pay.

Here’s what changes;

Redevance audiovisuelle – this was the TV licence and was charged at €138 per household, with some exceptions for pensioners or people who had no TV.

This year, it has been scrapped for everyone (including second-home owners) so most people’s bills are €138 less than last year.

Taxe d’habitation – this is the householder’s tax, paid by the inhabitant of the property – whether you rent it or own it. This is gradually being phased out, a process that started in 2019. It has been done based on income, with those on lower incomes having the charge scrapped first until it is gradually scrapped for everyone – with the exception of very high earners and second home owners.

So depending on your income level, you may have already had the tax phased out, or it may be phased out for you this year, or you may be paying a reduced rate this year.

These two changes are part of a tax giveaway from president Emmanuel Macron, and at the bottom of your tax bill you will find a note explaining how the charges have changed this year, and what you would have paid without the reductions.

It will look something like this;

Taxe foncière – this is the property owners’ tax and is paid on any property that you own – if you own the home you live in you may need to pay both taxe d’habitation and taxe foncière and if you are a second-home owner you will also pay both.

In contrast to the other two taxes, however, this one has been going up in many areas.

In fact, it’s connected to the taxe d’habitation cut – local authorities used to benefit from taxe d’habitation, so the phasing out has left many of them short of money. In some areas, they have reacted by raising taxe foncière.

This tax is calculated based partly on the size and value of the property you own (which is why if you do any major renovations or add a swimming pool you need to tell the tax office) and partly on the tax level decided by your local authority. 

This means that the actual rate varies quite widely between different parts of France, but in some areas it has gone up by 20 percent.

You can find more about how the tax is calculated, and how to challenge your bill if you think it is excessive, HERE.

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