Background information

Since October 2021, to cope with the sharp increase of energy prices, the government has set up a so-called Tariff Shield (Bouclier tarifaire) to mitigate the impact of such increases on the purchase power of the French citizens, especially the low incomes households. This measure includes several sub-measures which have been put in place as energy costs have increased. With the beginning of the war in Ukraine, the government has added a discount on the price of all fuels of up to €0.15 (excluding VAT) per litre between 1 April and 31 July 2022, for all households and companies.

Content of measure

To contain the impact of soaring fuel prices at the pump, a discount of €0.15 per litre, excluding tax, will be applied from 1 April 2022 until 31 July 2022. With VAT, this reduction will reach €0.18 in mainland France, i.e. €9 for a 50 litre tank. In its communication, the government presents this measure as an aid to the purchasing power of the French, but it goes beyond this aspect alone, since it is also a direct aid to professionals.

This reduction applies to all fuels and to all private and professional uses: road, rail, river and maritime vehicles (including transport, tourism and fishing), agricultural and forestry machinery, construction, public works and extraction equipment, as well as stationary engines used by companies.

The discount will be applied by the wholesalers distributing the fuel in service stations, and the State will pay them a subsidy corresponding to the volumes delivered. At the stations, the discounted prices will be displayed on the pump prices.

With the 20% VAT applied in mainland France, the reduction in the pump price will reach €0.18 per litre, i.e. €9 for a 50-litre tank. In Corsica it will be €0.17, with VAT at 13%. As petroleum products are exempt from VAT in the overseas territories, the reduction will correspond to the net discount.

Use of measure

The government gives no data, but as of 1 January 2021, the vehicle fleet consists of 38.3 million passenger cars, 5.9 million light commercial vehicles (LCVs), 600,000 heavy goods vehicles and 94,000 buses and coaches in circulation.

Target groups

Workers	Businesses	Citizens
Applies to all workers	Applies to all businesses	Applies to all citizens

Actors and funding

Actors	Funding
National government	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Informed	Informed
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: N/A

Involvement

It is mainly a governmental measure, even if some social partners have been informed.

Views and reactions

Trade unions welcome a measure that is easily understood by everyone. But some trade unions have a critical point of view, as the CFDT, the main trade union confederation, which estimates the measure is 'not sufficiently targeted'. 'With the measure, which will come into force on 1 April for four months, you get €0.15 per litre of fuel in the same way if you go to your second home at the weekend and need to travel 200 or 300 km', or 'if every day you travel 30 or 40 km to go to work"', said Laurent Berger, the general secretary of the CFDT.

Employers organisation Medef welcomed the measure but would like to see the introduction of a scheme allowing companies to distribute an allowance to cover the increased costs for heavy-duty employees who drive at least 40 or 50 km a day to get to work. The state would undertake to exclude this allowance from the calculation of income tax.

Sources

• 25 March 2022: Décret n° 2022-423 du 25 mars 2022 relatif à l'aide exceptionnelle à l'acquisition de carburants (www.legifrance.gouv.fr)
• 25 April 2022: Une aide financière de 15 centimes par litre de carburant pour les professionnels de santé libéraux (www.service-public.fr)
• 22 August 2022: Décret n° 2022-1168 du 22 août 2022 modifiant le décret n° 2022-423 du 25 mars 2022 relatif à l'aide exceptionnelle à l'acquisition de carburants (www.legifrance.gouv.fr)
• 02 January 2023: Décret n° 2023-2 du 2 janvier 2023 relatif à la création, aux conditions et aux modalités de versement d'une indemnité carburant (www.legifrance.gouv.fr)