Since last February, TotalEnergies and the government have been implementing discounts on fuel prices. Elements that fluctuate on prices and sometimes act beyond the simple framework of the price at the pump.
Since April 1, 2022, the French government applies a discount on fuel prices. Initially 18 cents, the latter rose to 30 euro cents (including tax) per liter on September 1.
TotalEnergies also decided to apply a fuel discount last February. From 10 centimes per liter, the latter lasted until May 15. This was followed by a similar drop on highways for the summer. On September 1, the French energy company relaunched a discount of 20 euro centsthis time.
Discounts lower prices…
A simple and concrete way to lower prices at the pump. Thus, on September 1, motorists could find prices around €1.50/L. The week of September 1, the average diesel price went from €1.95/L to 1,78€/L. Similar fall for gasoline, from €1.74/L for the SP95 E10 to 1,53€/L.
The descent continued until a “historical” average of €1.66/L for diesel and €1.49/L for SP95 E10, at the end of September. The cumulative rebates from the government and TotalEnergies offered up to 50 cents off. What to bring down the prices.
… but are not a guarantee of affordable rates
However, these discounts are not a guarantee of low prices. Evidenced by the current situation, in mid-October. Despite the presence of rebates, average fuel prices are back to their pre-September levels. Between October 7 and October 14, diesel sold on average 1,92€/L. For the SP95 E10, the price was 1,66€/L.
If the presence of rebates prevents an even greater surge in prices, it is therefore no guarantee of maintaining affordable rates. The rebate is indeed abused by the external elements that are current strikes and lack of fuel.
This leads some stations in particular to inflate prices. “There is obviously opportunistic behavior« recently lamented Antoine Raultier, head of studies for UFC-Que Choisir, on RMC and RMC Story.
“This famous rebate (…) nothing obliges distributors to apply it“. “In the event of a shortage, there are no more rules (…) nothing prevents you from increasing your prices”.
What a great publicity stunt!
Speaking of scarcity, there is no we didn’t have to wait for the strikes to see stations dry up. From the beginning of September, a number of TotalEnergies stations were “robbed”. Images of queues in front of the pumps, of dry stations, which have become almost “usual” with today’s strikes, were then all that is most astonishing.
At some stations, the volume of fuel sold was going to triple. All this thanks to these discounts, by offering an almost unbeatable price compared to competitors. The rebate is therefore a great publicity stunt for the energy company.
A way to pressure
The TotalEnergies rebate also used to put pressure on the government. A few weeks ago, the latter was considering introducing a tax on the superprofits of the energy company. What to react Patrick Pouyanné, boss of the entity.
In case of tax, the latter admitted that he could review the strategy related to the discount. “The contribution in 2023 will depend on the level of taxation you are going to decide« he launched last September, as reported RTL. « I’m waiting to see what will come out at European level (…) see how these profits are going to be taxed”. This before deciding « whether the voluntary part continues or not« .
The handover of the government is debated on the political side
Another debate agitates on its side the handing-over of 30 centimes of the government. Many politicians complain, simply, of the latter. Sandrine Rousseau thus evoked a « non-sens social ». “I have no desire for taxpayers’ money to be used for fill the tanks of Porsches and large 4×4s« , she thus caricatured at the microphone of France 3, early September.
Interestingly, this discount is not not even necessarily defended by the majority in power. Thus, Bruno the Mayor mentioned several times, in April and May, his disappearance. This is for the benefit of more targeted and fairer aid. Ditto recently, in October.
Still, that hasn’t been done yet. In addition, Elisabeth Borne has extended this famous discount of 30 cents, until mid-November. The latter will then increase to 10 euro cents per liter, to support drivers at the end of 2022. It remains to be seen whether this plan will be respected, while fuel prices are at their highest.
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