home Finance Fuels: Why Pump Prices Will Continue to Rise

Fuels: Why Pump Prices Will Continue to Rise

Geopolitical context, rising national taxes … fuels for the car is expensive for a few weeks, especially if you drive diesel, and it’s not over.

1.40 euro on average for a litre of diesel . Almost a cent more than last week according to France Info . The unleaded SP95 is close to 1.49 euros, an increase of 0.65 cents. While the SP98 is approaching 1.55 euro per litre, up 0.64 centime.

The increase in fuels has been global since the beginning of 2018 and reached prices at the highest level in four years according to LCI . Several factors come into play: the international context, the price of a barrel and national taxes. We take stock.

Why are prices rising?

At the international level, the first cause is directly related to the very tense contexts in the oil-exporting countries (war in Yemen and Syria, crisis in Venezuela), as well as the agreement between the Organization of the Petroleum Exporting Countries (OPEC). ) and Russia  on reducing crude oil production  as global demand continues to grow.

At the same time, the price of a barrel explodes: it is now worth $ 75, whereas it had fallen to $ 26 in November 2016.



But that’s not all. On the national level, in January 2018,  the internal tax on the consumption of energy products (TICPE) , which applies to petroleum products used as fuel, and the Climate Contribution Energy (carbon tax), have been revalued.

The litre of diesel has thus increased 10 cents and that of gasoline 6 cents since the beginning of the year. “Fuel is the most taxed product in France,” says Francis Duseux, president of the French Union of Petroleum Industries (UFIP).

Increases for another four years

For the president of the UFIP, the state will not stop there:”  there are increases planned for another four years . By 2022, diesel will rise by 34 cents. The government wants to reduce the price gap between gasoline and diesel to force drivers to change their habits and encourage them to turn to electric cars or gasoline.

According to a study conducted by the Public Health Agency , the number of deaths related to pollution is estimated at 40,000 per year in France.

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