Home > Economics > Mideast turmoil, record gas (petrol) prices in France

Mideast turmoil, record gas (petrol) prices in France

Prices at the pump are at record levels in France, largely due to the rise in oil prices which in turn can be explained by the instability in the Middle East, especially in Libya, (when is it ever stable? I guess I should say exceptional instability). Of course it’s necessary to take into account the VAT (value-added-tax) at 19.6% (tax that goes to the French state). But there is also the TIPP (taxe intérieure sur les produits pétroliers), a tax on petrol-based products explained in detail here.

Right now the average price for unleaded 95 grade is 1.5067 euros per liter (according to report by BFM TV). You can watch the video here in French. This is the first time it’s surpassed 1.50, or about $7.92 per US gallon at today’s exchange rate. Some analysts even predict prices may continue to rise and surpass the 2 euro mark.

News sites like RTL are showing anger against these price hikes, blaming it on the State and the oil companies. You can follow energy prices here at Bloomberg.

  1. March 8th, 2011 at 18:21 | #1

    Incredible, isn’t it? Americans would have all out riots and business would shut down if it got that high in the States.

  1. No trackbacks yet.

%d bloggers like this: