France will offer a discount of up to 18 centimes per litre on fuel from April 1, rather than the previously announced 15 centimes.
This change aims to take into account varying VAT rates around French territories, including overseas territories.
The reduction increase was announced by France’s Ministry of Ecological Transition yesterday (March 25) and should be confirmed in an official decree today.
French Prime Minister Jean Castex initially announced a discount on fuel prices in mid-March to combat rising costs linked to the war in Ukraine.
The reduction is set to remain in place for four months. The prices displayed at the pump will include the discount, so drivers will not need to do anything to claim it.
The Ministry of Ecological Transition said of the increase in discount:
“We wanted the 15 centimes-per-litre fuel discount to apply to everyone.
“As VAT is 20% on the mainland in France, the discount at the pump will be 18 centimes per litre including tax for the consumer.
“It will be about 17 centimes in Corsica, where VAT is 13%, and 15 centimes in the French overseas territories, where there is no VAT on petroleum products.
A report from RMC and BMFTV has suggested that not all petrol stations will be ready to make the switch to lower prices from day one, mainly because the price change will need to come from suppliers, and not the supermarkets or petrol stations themselves.
Service station tanks must be empty of the old fuel at the old price, before they can be filled with more fuel at the lower price. This means that some could still be offering the higher price come April 1.
Most stations are, however, expecting to offer the new price from April 1.