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Climate Action

France to phase out diesel tax breaks

The French government is looking to raise taxes on diesel and encourage drivers to choose cleaner cars, according to Energy Minister Segolene Royal

  • 09 October 2015
  • William Brittlebank

The French government is looking to raise taxes on diesel and encourage drivers to choose cleaner cars, according to Energy Minister Segolene Royal.

The plan is aimed at phasing out diesel tax breaks over the next five years and ending an advantage over gasoline.

Royal, the Minister of Ecology, Sustainable Development and Energy, is also responsible for transport, and has previously called for a ban on diesel or an end to its tax breaks.

Royal said: "We need to start preparing our move out of diesel right now…We should phase out diesel's (tax) advantage over five years."

According to Royal, the fuel tax levied on diesel is currently €0.15 per litre lower than on gasoline.

The plan is due to be discussed during the debate on France's 2016 budget bill, and should be offset by tax breaks for buying clean vehicles.

Diesel engines account for more than half of the cars in France and the fuel has faced growing criticism since the World Health Organization (WHO) classified diesel engine exhaust as carcinogenic in 2012.

City authorities in London and Paris have announced measures to restrict the fuel's use in vehicles.

The Volkswagen emissions scandal has also undermined a traditional argument in favour of diesel having lower carbon emissions than gasoline.