The discount at the state petrol pump drops from 18 to 30 centimes in September. More targeted aid to low-income households was eventually phased out.
During the night from Tuesday to Wednesday, the National Assembly passed the Financial Amendment Act 293 votes for, 146 against and 17 abstentions. It includes several measures to boost purchasing power, including raising the fuel discount, which will rise to 30 cents per liter in September and October (compared to 18 cents previously). This subsidy is then reduced and amounts to 10 centimes per liter in November and December.
Who can benefit?
The government had initially considered more targeted aid than that since January 1. The goal: to help the big scooters and the French who drive to work to refuel.
This compensation, aimed at low-income households, was eventually discarded. The new discount of 30 cents per liter of fuel therefore benefits everyone, regardless of their income or how often their vehicle is used.
How to benefit?
As before, this discount will be deducted directly from the price displayed at the petrol stations. The suppliers are then compensated by the state.
Note that this discount of 30 cents can be combined with that of TotalEnergies, which is 20 cents at all petrol stations in the group from September 1st to November 1st.
Specifically, the price displayed at the pump in total stations will include a discount of 50 centimes per liter of fuel for two months. This discount announced by the oil giant is also raising concerns among its competitors, who are unable to join such a measure.
When does this discount end?
The discount at the pump decreases until December. For the time being, the government does not plan to continue them in 2023. However, should inflation continue to rise, the state could review its copy of the tariff shield, which is set to be replaced with more targeted aid in 2023.
But the government is walking on eggshells. On the one hand, in view of rising energy prices, she is called upon to take measures to protect the purchasing power of the French. On the other hand, subsidies for fuel or heating oil should not be considered as a subsidy in favor of fossil fuels.
“This is a temporary aid, 30 cents in September and October, then 10 cents in November and December,” Minister of Economics Bruno Le Maire pounded on France Inter this Wednesday.
“It’s not about subsidizing fossil fuels. A majority of us rejected all measures that led to a definitive subsidy, such as the abolition of VAT,” he assured. A measure that is particularly desired by the members of the Reich Party Congress.