France's fuel prices soar to record highs as diesel tops €2 per litre
Fuel prices in France have hit record levels, with diesel surpassing €2 per litre and petrol nearing the same mark. The surge has sparked accusations that the government is benefiting from the crisis, though officials have denied these claims and refused to cut fuel taxes. The high prices come as the cost of a litre of fuel remains heavily taxed, with around 52% of the total price going to the state. The main tax, TICPE, is fixed and does not adjust when fuel prices rise or fall. The only variable tax is the 20% VAT applied to the remaining cost components.
Critics argue that the government is profiting from the situation, but ministers have rejected calls to reduce taxes. Instead, they have temporarily eased regulations, allowing the sale of less cold-resistant diesel until the end of March. Economists have warned that soaring fuel costs could slow economic activity, leading to lower overall tax revenues. The government itself has acknowledged that fuel tax income may not rise significantly, as higher prices could push drivers to cut back on purchases.
With no immediate plans to lower taxes, motorists face continued high costs at the pump. The temporary diesel measure offers limited relief, but broader economic concerns remain. Officials maintain their stance, despite warnings about the potential impact on both households and public finances.
