The State is not the “big winner” from the increase in fuel prices, defends the Ministry of the Economy

The Ministry of the Economy refuted Thursday, March 5, the fact that the State is the “big winner” from the increase in fuel prices linked to the war in the Middle East, as affirmed by the CEO of Coopérative U Dominique Schelcher. “An oil shock has never been good news for public finances” because “it affects growth and therefore it affects state revenue”, underlined the Ministry of the Economy during a telephone press briefing.

“What must be remembered regarding energy taxation is that the largest share of fuel-related revenues” namely the excise on petroleum products (formerly TICPE, internal consumption tax on energy products) “does not depend on the price of fuel,” he further detailed. While adding: “The only part that will increase when prices increase is VAT”, set at 20%.

Dominique Schelcher estimated Thursday that “the State” was the “big winner” from the increase in the price of gasoline because “more than 51% of the price you pay at the pump goes directly into the pockets of the State”. The leader of the National Rally (RN) deputies, Marine Le Pen, proposed Wednesday on RTL to reduce taxes on fuel to compensate for the increases.

No “fear” about supply

Reacting to these declarations, the entourage of the Minister of the Economy Roland Lescure underlined “that both the RN, which always makes its mark on energy issues, and some who spoke this morning to say that the State was still the big winner in the situation, are quickly going to work” or “in any case are using the situation to get out of the game”.

According to Ufip (French Union of Petroleum Industries), the price of a liter of fuel is made up of approximately 30% of the cost of raw materials, 50 to 55% of taxes (VAT and excise) and 15 to 20% of distribution costs.

The Ministry of the Economy received fuel distributors on Thursday to “ensure” that they will not practice exaggerated price increases, compared to that of oil prices. “What emerges from this meeting is that we are all mobilized: there is no disruption, no fear to be had regarding the supply,” indicated Ufip. “There may be shortages at some stations, but nationally we have an operating rate of our service stations of 97%. »