Angry motorists — known as “gilets jaunes” (yellow vests) — plan to block major roads all across France in protest of rising fuel prices.
Discontent was triggered by the government’s measures to keep increasing a direct tax on diesel, a fuel commonly used by motorists in France, as well as the carbon tax. Drivers protesting this Saturday see these as disproportionately affecting those who use their cars to get to and from their jobs every day.
Euronews interviewed Mathieu Chassignet, an expert on transport, to understand why fuel tax hikes have a lot of people in France riled up.
The hike in fuel prices is due to three things (two of which were decided by the government), said Chassignet.
A rise in crude oil prices in 2018 is the first reason why fuel prices have been high this year. The cost surged to a bit more than €80 per barrel in October although it has since dropped to the low 50s, high 40s in November. With a weak euro in regards to the dollar, this increase has been strongly felt by motorists.
“The price of crude oil increased a lot from July to October this year, it only started going down this month,” said Chassignet.
The second thing is an increase in the carbon tax, which is meant to limit greenhouse gas emissions.
Introduced in 2014 under the Francois Hollande government, the carbon tax falls under the domestic consumption taxes (TIC) umbrella. The government has the objective to keep increasing this tax for the next few years (going from €39 in 2018 to €47,5 in 2019).
Thirdly, the adjustment of the diesel tax with the petrol tax has particularly made diesel prices go up.
Since the beginning of this year, the diesel tax went up by 7.60 cents per litre, while the tax on petrol went up by 3.90 cents per litre.
According to a government breakdown on the prices of fuels, taxes make up 60% of the total price. The rest is subject to the price of the oil barrel.
Fuel is subject to two taxes. The first one is the domestic consumption tax on energy products (TICPE), which comprises the carbon tax and a value-added tax (VAT).
The TICPE helps finance the general budget of the state — including eco-friendly projects — territorial authorities, and transport infrastructure. The government expects it to bring in around €7.8 billion in 2019.
But environmentally-friendly projects are not only financed through this tax. Other taxes also contribute to the transition towards greener technologies.
Chassignet said that the government was increasing the carbon tax so the country could keep its commitments towards fighting climate change and greenhouse gas emissions.
As for the alignment of the diesel tax with the petrol tax, it became a government measure after studies showed that diesel was as polluting as petrol, said the expert.
“So a heavier tax on diesel is meant to encourage people not to buy diesel cars,” he added.
French Transport Minister Elisabeth Borne said the tax on diesel would increase by 6.5 cents per litre in January 2019. The tax on petrol is set to increase by 2.9 cents at the same time.
The ministry expects the alignment of the petrol and diesel tax in 2022, leaving it at 78 cents per litre.
The government says they plan to use the extra revenue in eco-friendly projects that fight climate change.
“Economic theory shows that if we increase the carbon tax, then CO2 levels will go down,” says Chastignet.
"Even though the government does use the tax revenue to fund environment-friendly projects, there needs to be more transparency in how else they are using the extra money," he said.
The highly-polluting kerosene cannot be taxed on international flights because a tax exemption was decided by an international agreement. A ratification of this agreement would need a unanimous vote by all 191 member states of the International Civil Aviation Organisation (ICAO).
However, it is possible to tax domestic flights, said Chastignet. But this hasn't been put forward by the government yet.
There are government plans in place that are meant to help people who heavily depend on their vehicles for transport, such as a financial incentive to exchange old polluting cars for newer eco-friendly models. The government also offers a subsidy called "ecological bonus" to drivers who rent or buy an electric car.