We know that fuel prices are still very high in France and have been for many years. And unfortunately, it will remain.

Fuel took off in France

Fuel prices have risen significantly in recent weeks, largely due to changes in crude oil prices. However, it is interesting to note that the price of a barrel is currently similar to September 2014, while the cost of petrol and diesel has increased significantly. In addition, in the Eurozone, prices for super unleaded 95-E10 fluctuate significantly from one country to another. For example, the average price of SP 95-E10 in France has increased twice as much as in Germany, by around +38% compared to +19% over the same period. In Italy, growth was 16% while among our Belgian neighbors – 17%. You should also know that France, which ten years ago had the lowest prices, is now among the European countries where tax-free gasoline costs the most. But what is the reason for this phenomenon? Don’t worry, we’ll explain everything to you!

Several explanations for the increase in fuel prices

In fact, the increase in gas prices is due to several factors. First of all, costs related to transportation and distribution, which also include the margin of profit of the oil groups and which have tripled in France, from 8 to 24 cents per liter. This significant increase obviously has a direct impact on the final price paid by motorists. But contrary to popular belief, this increase is not related to fuel taxation. Indeed, taxes (TICPE and VAT) increased by 12% over the same period, less than inflation. And not because of the distributor’s margin, which remains very low. According to Francis Pousset, they are “at best 5 cents per litre, the amount we have to cover our costs”. Thus, in France, mainly distribution costs have increased significantly, which directly affected gas station prices. And unfortunately, it won’t improve over the years as inflation continues to rise.

In short, the increase in pump prices is the result of a complex combination of factors, including transportation and distribution costs, profit margins, and taxes, which have all contributed to this development.

Read also:

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• The price of fuel: the government does not want to help the French anymore