The burden of new taxes on fuel prices

Posted in economy, features, news, technology, top news by admin on October 12th, 2009

The French Union of Petroleum Industries (UFIP) denounced Thursday the weight of the new fuel taxes. Its president, Jean-Louis Schilansky explained that "the stacking of the fees will be as a result adds a little salt on prices at the pump." "This increase will be very, very important. Long ago we had no such increase since the government of Jean-Pierre Raffarin, said the president of UFIP.

The introduction of "carbon tax" could result in an increase of 4.92 euro cents per liter of gasoline, an increase of 3.8% of current price, and of 5.41 cents per liter diesel (+5.1%). The association of consumer UFC-Que Choisir has also considered Thursday that the impact of carbon tax on prices at the pump would be "anything but marginal.With the VAT charged to tax carbon per tonne of CO2 would cost over 17 euros, as announced by the government, but 20.3 euros, VAT included. As for gasoline, this would result in an increase of 5 cents instead of 4 cents as advertised. "We expect the government to increase from 19.6% the compensation offered to households," said Francois Carlier of the UFC. The government responded Thursday afternoon indicating that the carbon tax will be fully compensated for households, including VAT, and it was never intended to keep VAT revenue generated by the measure."The amount of compensation paid to households will be exactly equal to the amount collected or 2.65 billion euros, as indicated by the preliminary evaluation of the reform, released at the same time as the bill Finance "said the Ministry of Finance.

Up to 10 cents more per liter

The UFIP also pointed to the possibility for regions to increase the TIPP (domestic tax on petroleum products) to 0.73 euro cents per liter for gasoline and 1.35 euro cents per liter diesel. This event provided by the Finance Act 2010 for areas that have additional resources for the financing of sustainable transportation (rail or water) could add further notes the consumer.

"By combining all measures that apply to fuel in 2010, prices could rise to 8.8 cents per liter for gasoline and 10 cents for diesel," says the UFIP. The upper range, which represents 7 to 10%, includes in addition to the impact of carbon tax, the maximum increase of TIPP, but also indirect effects such as the impact of extending the licensing system of economy 'Energy and the requirement for incorporation of biofuels for fossil fuels. Vendors of energy that do not respect these ecological principles being penalized.

Biofuels: a five-station is equipped with only 20% of French service stations are currently equipped to distribute the new E10 biofuel, far from 60% to 70% predicted, said Thursday Jean-Louis Schilansky, president of the French Union of Petroleum Industries (UFIP).The President of the UFIP recalled that almost all cars registered after 2000 could use the E10, but it could have a corrosive effect on engines of cars unsuited. The French ethanol producers sold 7.4 million hectoliters in 2008 and plans to distribute 20% more in 2009 with the launch of the E10.

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