Is Elisabeth Borne the latest celebrity to stir up controversy? After a heated response to a woman who was disabled and was denied benefits, Elisabeth Borne's statement that fuel taxes do not pay the state any money prompted many reactions. The Prime Minister is lying, however.
I can assure that the State doesn't make money from fuel taxes today.
Elisabeth Borne, Wednesday evening, in Vire (Calvados)
Last week saw petrol prices rise above 2 euros per Liter in France, as a result of the partial embargo imposed by the European Union on Russian oil.
The price of fuels is, in essence, made up of the oil price and any related costs (especially refining), transport and distribution costs and taxes.
The TICPE (domestic use tax on energy products, ex TIPP) is one of them. It amounts to about 60 cents per liter diesel and 69 cents per liter gasoline. There are differences depending on the region (Ile-de-France and Corsica, as well as other regions).
Fixed means that any variation in oil prices, such as fuel at the pump, has no effect on the State's contribution.
However, this is not true for VAT (value-added tax). There are two types of VAT for fuels. The first applies to fuels and is fixed. It applies... to the TICPE. Fuels can range from 12 to 14 cents per litre depending on which fuel. The second VAT, which is 20% per product, applies only to oil prices and varies depending on the fuel.
According to Energies et Mobilites' (ex-Ufip), a liter SP-95 costs 2.10 euros. Oil is around one euro per gallon. This means that this cost would be slightly more than 20c.
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The price of one liter SP-95 has increased from EUR1.65 to EUR2.10 since the beginning of the year. Oil prices have risen from $80 to $120 per barrel. These sums have resulted in a surplus of VAT at 6 to 7 centimes per Liter.
However, motorists are entitled to a discount of 15-18 cents per liter in this context. This means that the State does not make more money, but loses it with every fill-up.