France to phase out €0.18 fuel rebate for drivers
The French government has confirmed it will phase out the €0.18 fuel rebate by the end of the year and will replace it with a fuel allowance for certain drivers.
France's current €0.18 fuel rebate - brought in back in April to help soaring petrol and diesel prices - will be ditched by the end of the year.
It will be gradually reduced prior to being scrapped entirely before the start of 2023.
"We will reduce the €0.18 discount to €0.16, then €0.12, then €0.10. We will do it very gradually, but at the end of the year there will be no more fuel discount," French Finance Minister Bruno Le Maire told FranceInfo radio on Thursday.
The measure will be replaced by a financial payment scheme specifically for low-income workers who rely on their vehicles to get to and from work. Le Maire confirmed on Thursday this will come into effect starting on October 1st.
READ MORE: French government plans new payment scheme to help motorists with fuel prices
The new benefit could affect up to 11 million households, with the current plan being that it would apply to those earning up to €1,600 per month.
The goal of the new financial payment scheme is to help those who take their cars to work but can “no longer make ends meet because the price of fuel is too high,” said Le Maire.
Currently, with the €0.18 discount in place, a litre of diesel in France costs an average of €2.05, and the price of petrol (SP95 – E5) is currently averaging at €2.07 per litre. For E10 petrol, the average price per litre (with the discount applied) is closer to two euros, standing at €2.02.
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France's current €0.18 fuel rebate - brought in back in April to help soaring petrol and diesel prices - will be ditched by the end of the year.
It will be gradually reduced prior to being scrapped entirely before the start of 2023.
"We will reduce the €0.18 discount to €0.16, then €0.12, then €0.10. We will do it very gradually, but at the end of the year there will be no more fuel discount," French Finance Minister Bruno Le Maire told FranceInfo radio on Thursday.
The measure will be replaced by a financial payment scheme specifically for low-income workers who rely on their vehicles to get to and from work. Le Maire confirmed on Thursday this will come into effect starting on October 1st.
READ MORE: French government plans new payment scheme to help motorists with fuel prices
The new benefit could affect up to 11 million households, with the current plan being that it would apply to those earning up to €1,600 per month.
The goal of the new financial payment scheme is to help those who take their cars to work but can “no longer make ends meet because the price of fuel is too high,” said Le Maire.
Currently, with the €0.18 discount in place, a litre of diesel in France costs an average of €2.05, and the price of petrol (SP95 – E5) is currently averaging at €2.07 per litre. For E10 petrol, the average price per litre (with the discount applied) is closer to two euros, standing at €2.02.
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