SHARE
COPY LINK

MONEY

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.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

TAXES

Why you might find extra money in your French bank account this week

When you check your French bank account on Wednesday, you may find a nice surprise from the tax authorities.

Why you might find extra money in your French bank account this week

Millions of people across France will receive a tax rebate either a direct bank transfer or a cheque (by mail) over the next few days. The first round of reimbursements will be sent out on Wednesday, July 24th, and the second will be sent on Wednesday, July 31st.

If you filed your taxes online via the impots.gouv.fr website, then you can expect your reimbursement to be sent between July 24th and 31st. 

Those who filed on paper may have to wait a little longer. They could receive their rebate sometime between July 24th and August 20th, Actu France reported.

READ MORE: 7 top tips for dealing with the French tax office

The most common scenario for people receiving a rebate is salaried employees whose income is deducted at source, but who are entitled to tax credits, rebates or refunds for things like childcare, domestic help or charity donations.

However money may also be sent to people who are found to have overpaid, or who qualify for other types of rebate.

How does the rebate work?

Most people will receive the payment directly into their bank account, as that information should already be shared with fiscal authorities.

It should appear under the wording ‘REMB IMPOT REVENUS’ and it will be coming from ‘DGFIP FINANCES PUBLIQUES’, according to the French government.

To ensure that the reimbursement goes through smoothly, you may want to check your tax account to verify that the bank account information is correct.

You can do this by going to the Impots.gouv.fr website and clicking ‘Prélèvement à la source’ and then ‘Mettre à jour vos coordonnées bancaires’.

Tax bills

Not everyone will be getting money, some people will be getting bills.

For employees this may be because they were being taxed at the wrong rate, or because they have declared extra income in addition to a salary (eg income from rental property including Airbnb rentals) or they received too much in tax credits earlier in the year and now need to pay back a sum.

Self-employed workers will be getting a tax bill based on the income they have declared for the year. This is in addition to their more regular URSSAF contributions.

How to pay

If you owe up to €300, then you will be automatically debited (from the bank account linked to your tax account) on September 26th.

For those who owe more than €300, the payment will be taken in four separate installments. The first will be on September 26th, then October 25th, November 25th and December 27th.

Beware of scams

Fiscal authorities have warned that people should beware of scams circulating around this time of year, as bad actors may be seeking to impersonate the DGFiP (Directorate General of Public Finances). 

These might include false notifications of refunds, accusations of tax fraud, or requests for payment.

The DGFiP has warned people on their website that tax authorities “will never send emails inviting you to visit an online form to obtain a refund without first logging into your authenticated personal space.”

Tax authorities also warned that they only use email addresses with the domain “@dgfip.finances.gouv.fr”.

As for SMS scams, the DGFiP states that it “never sends out text messages for non-payment.”

It advises that “as a general rule, do not click on the links you receive in text messages telling you that you have to pay a bill, fine or tax. If in doubt, contact the relevant department using another channel (via your personal account, by email or by telephone).”

SHOW COMMENTS