With the commodity crisis caused by way out of the covid pandemic and the arrival of Fr war in Ukraine, fuel prices are rising rapidly. Gasoline, diesel and even electricity all apply. But what is more surprising is that diesel is now more expensive than gasoline ! We explain why.

Lower taxes

Long before the arrival of covid and the war in Ukraine, v comparison of gasoline and diesel acted Until then, the price of diesel fuel in France was artificially kept below the price of gasoline thanks to lower taxes. Taxes represent about 60% what you pay at the gas station, between VAT and TICPE (tax on internal energy consumption). But after Dieselgate, taxes on diesel fuel and gasoline are equivalent worldwide, which logically led to increase in diesel fuel prices.

But by that time diesel had not managed to overtake gasoline for the most part. If these two prices have converged in recent months, even with a one-time overtaking of gasoline by diesel in 2021, diesel prices are another surprise. On March 11, 2022, diesel sold for an average of €2.141/l compared to €2.083/l for SP95 or even €2.029/l for SP95-E10. Prices for diesel and gasoline crossed week of March 4with no signs of rest from the diesel side.

Imported diesel… From Russia!

And the reason is the consequence of a simple rule: supply and demand. Indeed, there is a demand for diesel significantly decreased in France for several years. If diesel engines recently accounted for more than half of new sales, in 2021 they only formedjust over 20% of sales. Free fall!

So to cope and maintain their margins, oil companies decided to focus on gasoline. Diesel now is much more often imported than gasoline. However, according to INSEE, 26% of the crude oil imported into France in 2020 came from the countries of the former USSR… With consequences that we can easily imagine in the midst of a war between Russia and Ukraine. That’s why diesel prices are like this had a stronger impact this war than gasoline.

A situation that will last

A situation that is not ready to stop. First of all because The government does not want to reduce the pressure on fuel prices. The state wants to promote the ecological transition, taxes will remain high. In addition, the price of fuel will probably rise again in the coming weeks, in particular due to limited production by OPEC countries.

Diesel, which was pushed for a long time by state bodies, quickly becameenemy number one. Since Dieselgate, the fuel has been increasingly frowned upon despite increasingly stringent standards. Therefore, its price should remain very high in the coming months and years to come.