Fuel. Discount of 18 cents per liter: how will it be applied?

Announced on March 12 by Jean Castex to combat rising prices after Russia’s invasion of Ukraine, the “15 cents per liter gas station discount” will finally become an 18 cents discount. It will be applied from next Friday at service stations.

Why 18 cents?

“We wanted the 15 cents per liter fuel discount to apply to everyone. The discount is calculated on the basis of 15 cents excluding tax, which explains why the discounts are different depending on the amount of VAT applied to petroleum products,” the Ministry of Economic Transition explained on Friday. Thus, “at 20% VAT on the mainland in metropolitan France, the discount at the filling station would be 18 cents per litre, including consumer tax. In Corsica, it will be about 17 cents, where VAT is 13%, and 15 cents abroad, where there is no VAT on petroleum products,” the ministry explained.

What fuels are affected?

According to the decree published on Saturday, only aviation fuel is excluded from the list. “We are especially talking about the following types of fuel: diesel fuel V0, V7, V10, V30, V100 and KhTL, including for off-road use (GNR), gasoline SP95 / 98-E5, SP-95-E10, SUG-ts, LNG in compressed (CNG) or liquefied (LNG) form, superethanol E85, diesel ethanol ED95. All users will receive it: “road, rail, river and sea transport (including transport, tourism and fishing), agricultural and forestry machinery, construction and public works and mining, stationary engines of companies.”

How will it be applied?

The government wanted the discount to only appear at the checkout so that the amount saved would be visible on the receipt. Too complex: The discount will eventually be integrated into the prices displayed on gas station totems and gas station screens. Therefore, contrary to what was originally announced, it will be the purchasing centers and wholesalers who will advance the money, and not the employees of the gas station. The reduction was made from Sunday “at the level of marketers, everything that has warehouses and refineries, who will apply the discount to wholesale sales,” Ufip Energies and Mobility, which unites oil sector professionals, said.

How long ?

This discount will begin “at the choice of the operator from March 27, 2022 to April 1, 2022 and end on July 31, 2022,” the decree specifies. In other words, it could start right now. Will all gas stations be ready by April 1st? The Ministry of Ecological Transition will offer a cash advance of 3,000 euros to small rural stations that replenish stocks less frequently “so that they can put the measures in place on D-Day.”

What will be the savings?

For Clio V with a 39-litre tank, the discount can be up to 7 euros. For the Peugeot 208 (best-selling in France last year) and its 44-litre tank, the potential savings are almost 8 euros. Finally, for the 2014 Citroën C8, which can carry up to 80 liters of fuel, the maximum discount will be more than 14 euros per tank. In total, three billion euros of loans will be allocated for this event.

How to be sure of its application?

With constant fluctuations in prices and differences between stations, it will undoubtedly be difficult for a motorist to grasp this discount of 18 centimes per liter very clearly. But, the government promises, all STOs will have to play this game on pain of sanctions. “STOs are already required to declare their prices on the state website,” the Ministry of Ecological Transition said. Parisian. “From April 1, the stations of the main networks will also have to send their daily statements every week. If DGCCRF detects abnormal prices or unexpected deviations, agents will conduct an investigation to verify invoices. »

The price of road fuel sold at French gas stations fell below 2 euros on average last week, falling for the first time since the start of the year, according to official figures released last Monday.

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