Anger at fuel prices: why the rise?

They say sporadic blockades and demonstrations will continue until action is taken. Nurses vowed to join in.

The protests were organised through social media and several were not declared, as legally required, to prefectures. A woman protestor was run over and killed by a driver trying to pass and 14 people were seriously injured on November 17.

Below we analyse the fuel price rises.

How much have fuel prices increased?

In mid-October when protestors began to voice anger, fuel prices were 19 cents per litre higher for petrol than in May 2017 when President Macron was elected (SP95 €1.37 to €1.56) and 31 cents higher for diesel (€1.21 to €1.52). The extra tax in this is 7 cents for diesel and there will be another 7 cents in 2019. The tax on petrol will also increase, by 4 cents.

Is it all tax?

For petrol, 34% of the rise is due to new tax and 37% for diesel. The rest is down to rises in the price of crude oil, which has tripled since February 2016.

Although the price of crude oil in dollars is lower than five years ago, currency fluctuations mean euro-buyers are not benefiting from this fall.

Why has diesel gone up more?

France decided under the Hollande government to neutralise the tax advantage given to diesel cars so they are treated in the same way as petrol cars.

President Macron has maintained this.

Diesel cars burn fuel more efficiently than petrol ones and so emit less carbon dioxide, the gas blamed for most of the “greenhouse effect” responsible for global warming. But older diesels, especially those using mechanical injectors, emit more fine particles of pollutants which are small enough to enter the bloodstream via the lungs. Researchers have linked these particles to 48,000 deaths from pollution each year.

In percentage terms, tax has dropped

In percentage terms the amount of tax applied on fuel has not changed much since 2008 – in fact, it has fallen. In 2008 taxes made up 64% of the price of a litre of petrol. The percentage now is 61.4%.

France is eighth highest in EU

European Commission figures show that the average price of petrol in France on November 12 was €1.48 a litre, making it the eighth most expensive European country for petrol. Italy is the highest with a litre reaching €1.65. The UK is cheaper at €1.47.

For diesel France is the fifth most expensive. Sweden is the highest with an average price of €1.58.

Billions go into general budget

The main fuel tax, the TICPE, raises €34billion a year for France – 61% goes to the state, 18% to the regions, 18% to departments and 3% finances transport infrastructure. Of the state’s share, €7.2bn is used directly for measures to protect and improve the environment, the rest entering the general budget (some of which is used for environmental initiatives).

We are better off than 40 years ago

Relatively high pay in France means petrol is cheaper in real terms than 40 years ago. An hour’s pay at today’s minimum wage buys six litres of petrol. It bought three litres in 1978.

Will the protest change anything?

The government says not. Prime Minister Edouard Philippe says they will be sticking to their tax policies. He said that not to do so would be to be acting without taking into account the risks we face.

Will there be more protests?

Around 140 protests took place on November 18 and more were promised in the weeks to come.

Related articles:

'We just cannot afford to drive'
President's driving cheque plan 'idotic'