Gasoline prices: why the Mayor prefers a fuel check to lower taxes – The HuffPost

Eric Gaillard via Reuters

FUEL – Soon a fuel check to counter soaring oil prices? Probably, but not right away. “There is still work to be done”, warned, Monday, October 18, the Minister of the Economy, Bruno Le Maire, before adding that he still preferred this option to a reduction in taxes on diesel and fuel. ‘gasoline facing the steep rise in prices at the pump.

A tax cut is “unfair” because it would not target households that need it most and “it is very expensive”. A drop of a cent, hardly noticeable, represents “half a billion euros” less in the state coffers, justified the minister on Europe 1. In addition, “it is a subsidy for fossil fuels, precisely what we want to avoid” in the strategy to fight against global warming, he added.

Since the start of the school year, refueling has never hurt motorists’ wallets so badly. During the first week of October, diesel was selling for 1.5354 euros / L on average, a price even higher than in October 2018, at the start of the yellow vests crisis, which had mobilized precisely on this subject.

“As quickly as possible”

In recent weeks, the government has repeatedly announced that it is considering setting up a mechanism to deal with soaring fuel prices. One more time, Bruno the Mayor assured that the stake for the government is “above all (to) know that it can happen as quickly as possible to the French”. “There will be short-term action,” promised Emmanuel Macron on Friday, October 15.

The government has already put in place last month, with payment scheduled for December, an exceptional energy check of 100 euros for the nearly 6 million households already benefiting from this system. The cost will be 600 million euros for public finances. In addition, the cap on the increase in electricity prices expected in February will cost the state 5 billion euros.

The Energy Regulatory Commission (CRE) it validated the government’s proposals, however, recommending the application of a temporary reduction in gas taxes. It would be a question of applying it on January 1 to mitigate the two new massive increases in the regulated tariff (+ 19.5%) expected in November and December.

Meanwhile, Saturday, October 16, yellow vests tried to return to this issue, calling to meet again on roundabouts. A call finally little followed, with gatherings of barely a few dozen people in Toulon, Beauvais or Châlons-en-Champagne.

See also on The HuffPost: Why Gas Prices Keep Rising (And It’s Not Over)