The floating TIPP

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Keywords: tax, petroleum products, oil, fuel, gasoline, diesel, fuel oil, gas oil, diesel.

What is it ? The floating TIPP is a mechanism to make flexible the domestic tax on petroleum products (TIPP) by the government to compensate for fluctuations in oil prices with a flexible and variable fee (prices appear then stabilized at the pump).

At its establishment in July 2000, this floating TIPP allowed the lump sum reduction of the TIPP about 20 cents per liter.

In July 2002, the government announced the elimination of the floating TIPP, which resulted in an increase in the taxation of € 1.55 per hectoliter of diesel.

According to customs, the TIPP at the pump rose from € 35,49 / 1997 hectoliter to € 38,90 / 2002 hectoliter.

Note that this suppression has resulted in increased state revenues of € 500 million and the TIPP reported almost 24 billion annually.

Currently according to Mr. Dominique Bussereau, Secretary of State for the Budget and Budgetary Reform, the increase in oil prices was due to OPEC policy, significant consumption of the United States and China and international uncertainties. The price at the pump, he said, is currently 10% lower than that found in 2000 when the TIPP floating mechanism was introduced.

In addition, the barrel price is very volatile. As a floating TIPP would it be inappropriate and very expensive.

The government therefore has no plans to restore the floating TIPP.

While the floating TIPP raises sterile debate, should not you revive it another debate on the long term to establish a replacement for diesel fuel and a balanced tax & independent?


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