Fuel prices: how to find cheaper fuel?

The price of fuel depends on the cost of the noise barrel, processing and distribution costs, and government taxes. This explains the difference in prices from one point of sale to another, as well as between European countries, as well as its fluctuations depending on oil prices. Here's everything you need to know about fuel prices!

⛽ How is the fuel price allocated?

In France price fuel is a sensitive topic for consumers, especially highlighted by the Yellow Vests movement. I must say that fuel makes up a significant part of the French car budget.

But fluctuations in the price of fuel (gasoline and diesel) at a filling station are not only due to its nature as a fossil fuel, but also to fluctuations in the price of a barrel of oil. Indeed, the price of a liter of fuel also takes into account many of the taxes associated with this energy.

Thus, the price of fuel in France includes:

• Le barrel price raw oil;
• Le processing cost petrol;
• . transportation, storage and distribution costs ;
• . taxes.

The crude oil price is calculated for about a third the final price per liter of fuel. Corn close to 60% fuel prices are actually taxes. Thus, the remainder represents the processing margin, as well as the transportation, storage and distribution costs, which all account for less than 10% fuel price.

One of the reasons taxes make up such a large portion of the fuel price is because there are several of them:

• La VAT (Value Added Tax);
• La TICPE (Domestic energy consumption tax), including carbon tax.

🔍 How is the fuel price set?

In France, the fuel price is made up of the price of a barrel of crude oil, refining, transportation, storage and distribution costs, as well as VAT and TICPE. While taxes are the responsibility of the French government, the other elements that make up the price of fuel do not.

Thus, the price of a barrel of crude oil depends on the price of oil and oil markets. It can fluctuate depending on various events: supply and demand, the market, as well as geopolitical tensions in the producing countries.

Refining and marketing costs are set by the industries responsible. Fuel taxes remain. VAT 20% of the total price including TICPE. The latter applies to all petroleum products intended for consumption (heating, fuel, etc.), and is set by the government.

This is partly expected to contribute to the energy transition and the development of renewable energy sources. V ICT (Domestic consumption taxes) do apply to all fossil energy sources.

💸 Why is the price of fuel increasing?

Increases and decreases in fuel prices mainly depend on two factors: barrel price oil andevolution of taxes imposed by the government. While other elements make up the price of fuel, they make up less than 10% of the cost of fuel and are less prone to fluctuations.

The price of a barrel of oil depends on market prices for which change regularly. Like the stock market, it is not immune to crashes. The oil price is very sensitive and can rise due to diplomatic tensions or armed conflicts in the producing countries. Thus, geopolitical tensions in the Middle East could suddenly lead to higher prices that obey the law of supply and demand.

The dynamics of fuel prices also depends on government French, which heavily imposes this tax. Thus, taxes account for more than half of the cost of a liter of fuel. When the government decides to increase these taxes, the price of fuel goes up too – logically. In particular, this led to the yellow vest crisis in 2018.

In general, it should be understood that oil is a fossil fuel, that is, non-renewable. In addition, it is a rare product that cannot be found anywhere on the globe, and France is completely dependent on its imports.

All this means that even without taxes, the price of fuel unlikely to fall in the coming years. Therefore, the transition to energy and the development of alternative energy sources are becoming increasingly important. This is the reason why the number of electric and hybrid vehicles is growing.

📍 Where can I find fuel by price?

The price of fuel is a significant part of the motorist's budget. However, you can save on fuel costs. To do this, first of all, you need to find cheaper fuel! One solution is to go through fuel price comparator.

So joint sites which allow consumers to quote the price of a gas station at a gas station they encounter, which pass this information on to other users of the site or application.

There is also a government website on fuel prices. Available on https://www.prix-carburants.gouv.fr/, it shows the average price of fuel in retail outlets across the country, and also allows you to search for gas stations along the route, so you can, for example, plan ahead where to refuel on your trip so as not to pay more for fuel.

Another solution: buy your fuel at cost... This is a price that does not include the distributor's margin and therefore allows you to earn a few cents per liter. Supermarkets are likely to handle fuel at cost. Watch them refuel for a lower price!

Now you know what the fuel price consists of and how it is set. In order to pay less for fuel, the best solution is to use price sharing platforms, be they government or co-branded sites. High-value fuel operations also allow you to pay less for fuel.