POST Online Media Lite Edition


France to consider phasing out diesel tax breaks

Staff writer |
France is considering raising taxes on diesel over the next five years to end an advantage over gasoline and encourage drivers to choose cleaner cars, Environment Minister Segolene Royal said.

Article continues below

Diesel's image has been tarnished by health warnings and in the past month by revelations that Volkswagen cheated on emissions tests in the United States, putting countries like France that have promoted diesel cars in recent decades in an awkward position.

Royal, who is also responsible for transport, has in recent weeks rejected calls to ban diesel or end its tax breaks, but on Sunday backed the idea of phasing out the fuel's tax advantage.

"We need to start preparing our move out of diesel right now," she told France 5 television. "We should phase out diesel's (tax) advantage over five years."

She said that the fuel tax levied on diesel was currently 0.15 euros per liter lower than on gasoline.

What to read next

Zimbabwe government to ban use of ordinary diesel
France: U.S. must comply fast with WTO Boeing ruling
Senior German leader: EU could break apart, that's clear now