Fuel prices have been skyrocketing for months, and €2 per liter offered at the pump is almost common. For some netizens, while the French and the French are decimated to be able to move, the government is filling their pockets. A post, published in recent weeks on social networks, asserts that the state receives about 70 billion euros annually thanks to fuel taxes.
The calculation is detailed there: 60% tax on a liter of fuel at a cost of 2.15 € [selon l’exemple en question]The state pockets 1.25 euros. We multiply by the 160 million liters we sell each day, and then throughout the year. The amount obtained is astronomical. “Now you know who pays ‘whatever it takes’!” ‘, type Internet users.
The numbers used in these calculations are wrong, and state revenues are exaggerated. Let’s take the information to see more clearly. French motorists do not buy 160 million liters of fuel per day, contrary to what the publication claims. According to the French Federation of Petroleum Industries (Ufip), consumption amounted to 48.2 billion liters in 2021, that is, 131.5 million liters purchased daily.
Next, let’s move on to taxes. The government website clearly states that “Taxes in France are about 60% of the price of gasoline and diesel at the pump. But this is no longer the case today, due to the sharp rise in prices for several months. In detail, the tax applied to fuel by the state is a value tax The latter two are fixed, and the value-added tax varies only according to the price of the petroleum product or transportation and distribution costs.So with the sharp rise in oil prices, the tax share of the final price decreases.
According to a price breakdown on July 1 by Ufip, the state-owned quota on diesel is 0.953 euros per liter at a price of 2.06 euros. On the 95th unleaded side, it is 1,038 euros per liter at 2.08 euros. So we are far from 1.25 euros as posted. Instead of 60% of the selling price, the state’s revenue approaches 45%.
Revenue less than 49 billion euros
Thus, if all fuels sold in France were taxed as gasoline – the highest tax – we would have an annual revenue of 49 billion euros, well below the advertised 70. But it is not that simple. Added to the 18 cents per liter discount in place since April. This is an amount that the state pays directly to distributors at the top of the distribution network. This should represent a cost to public finances of at least 3.2 billion euros this year, according to the authorities.
Other factors may contribute to the decline in government revenues in this area. This is for example the case of exemptions from VAT, especially for professionals.
The new aid could also soon see the light of day for people who use their cars to get to work. This ‘worker fuel allowance’, as Percy calls it, will be paid ‘according to the level of income’, Minister Bruno Le Maire explainedwithout specifying the ceiling that can be adjusted.