The term black gold refers to oil, a critical resource for global energy. In France, the price of the most commonly used fuel, SP95, has reached its highest level since the outbreak of war in Iran by the United States and Israel in late February and the subsequent blockage of the Strait of Hormuz. At the time, concerns were raised about the potential for a global economic slowdown and a "shock for the French economy." Seven months later, the situation has worsened, with rising fuel prices fueling public frustration and demands for renewed action, despite government aid measures that some say are not enough. Various political groups and experts have proposed several solutions to address energy insecurity and reduce reliance on fossil-fuel-powered vehicles.
One proposed solution is reducing the value-added tax (VAT) on fuel, a measure supported by the National Rally and communist candidate Fabien Roussel. They suggest lowering the VAT on all energy sources from 20% to 5.5%. However, critics argue that this would benefit all consumers equally, regardless of income, and could strain public finances. Experts warn that this approach might not actually lower fuel prices for consumers, as seen in 2009 when businesses like restaurants and gas stations used similar measures to increase their profits. It could also discourage carpooling or the use of alternative transport methods, potentially increasing reliance on fossil fuels.
Another proposal is to reduce the excise tax on energy, a move favored by the National Rally, which suggests reversing the increase in excise taxes since the presidency of François Hollande. This change would cost the state 12 billion euros. In contrast, left-wing parties suggest a "floating TICPE," which would adjust the excise tax based on oil price fluctuations. While this could help stabilize fuel prices during sharp increases, it might become complicated if oil prices remain highly volatile.
In 2022, a direct subsidy to fuel distributors, offering up to 30 cents per liter sold, was tested. However, this approach was costly, resulting in a 7.5 billion euro loss for the state. It also disproportionately benefited wealthier households, who tend to use cars more frequently. Another idea, supported by left-wing groups like LFI and the communist group (GDR), involves temporarily capping fuel prices and refining margins during an energy crisis. While this could help stabilize the market, it risks causing supply issues if domestic prices fall below international market costs, potentially leading to shortages. Experts suggest that while shortages might not be inevitable, localized supply problems could occur if the cap is set too low.
Some propose nationalizing the oil company TotalEnergies, an idea backed by communists and the Insoumis movement. They argue that either Total should help lower fuel prices or be taken over by the state. However, experts caution that nationalization might not directly lower fuel prices and would not grant the government control over the global oil market. They suggest that more direct tools, such as regulation, taxation, or competition law, are more effective than changing ownership.
Finally, left-wing parties suggest taxing the superprofits of oil companies to fund measures that reduce reliance on fossil fuels, such as promoting electric vehicles or improving public transport and cycling infrastructure. Experts emphasize the importance of redirecting subsidies toward public transport to make it a practical alternative to private car use.
Fuel Prices and Policy Proposals in France Amid Energy Crisis
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- 🇫🇷Bon Pote



