Fuel price surge cuts French tax revenue as consumption falls

France's public accounts minister, David Amiel, told a televised interview that the recent jump in fuel prices has shrunk the state's tax income from gasoline and diesel. Because consumers are buying less fuel, both excise duties and value-added tax collections have fallen, creating a notable deficit for the treasury and for local authorities. Amiel said that earlier projections of the shortfall were a bit larger than one outlet figure.

He also highlighted that taxes make up roughly half of the pump price, though the share varies with the pre-tax cost. Prices for SP95-E10 and diesel are near record levels, prompting the government to start releasing millions of barrels of diesel from November 1 to try to bring prices down.