Producers warn of announced tax hike on SP95-E10

Taxes on SP95 could be voted on in the Assembly (illustrative image).

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Agricultural alcohol producers were alarmed on Friday by the tax hike planned by the government on SP95-E10, the first of the essences sold today in France.

The finance bill for 2021 plans to phase out the reduced tariff for E10 (which contains up to 10% ethanol), by aligning the tax levels (TICPE) imposed on SP95-E10 over two years, with SP95 and diesel.

This would represent an additional cent per liter, i.e. an additional cost of 30 million euros in 2021 then 60 million in 2022.

A sector affected by containment

“This increase is contrary to the government's commitments not to increase fuel taxes until 2022 after the yellow vests movement and not to increase taxes, with the Covid crisis”, protests the Bioethanol Collective , which brings together the Interprofessional Association of Beet and Sugar and the National Union of Agricultural Alcohol Producers.

“It would affect motorists who are the most sensitive to fuel prices among those, more and more numerous, who run on gasoline”, but also a sector affected by confinement, she argues.

SP95-E10 represents around 50% of unleaded gasoline sold in France.

The industry hoped to reach 75% within five years.

Ethanol, produced in France, the producers point out, composes up to 7.5% of SP95 and SP98, and up to 10% of SP95-E10.

It is also part of the composition at 85% of Superethanol-E85 (which requires the installation of an E85 conversion box).

The examination of the PLF begins Monday in public session at the National Assembly.

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