Gasoline prices are on the rise once more at the pump. They are once more at their highest on Tuesday. The records for the month of March are exceeded. The 98 liter of gasoline costs 2.03 euros. And for the 95, it’s 1.95 euros per liter. Many of you ask us why we don’t feel the effect of the reverse ratchet.
“Prices at the pump are still rising. The government had nevertheless activated the reverse ratchet. Can you enlighten me?”, Michael asks via our orange Alert Us button. He is not the only one asking us this question.
The liter of gasoline increases by more than 5 cents. A liter of 95 petrol today costs 1.95 euros per litre. Why do gasoline prices continue to rise? Why are we not feeling the effects of the measures taken by the government? Here’s what you need to know:
- First of all, there is a confusion between “reverse ratchet” and “price lock”. Just because there would be a reverse ratchet doesn’t mean prices at the pump won’t continue to rise. The reverse ratchet just amounts to reducing the share of taxes, applied to each liter of diesel or gasoline. But the price at the pump does not only depend on taxes, but above all on the price of the raw material, oil in this case, which continues to climb. And who is therefore solely responsible for the rise in prices.
- The government did not apply a reverse ratchet, but opted for a system that produces the same effects, except for 6 cents. Instead of proportionally reducing the share of fuel taxes according to the price (reverse ratchet), the government grants an automatic discount (flat rate) of 17.5 centimes on each liter of fuel. This system has the advantage of lowering the price paid at the pump faster than the reverse ratchet. But the aid is capped at 17.5 cents per liter, whereas from a price of more than 2 euros per liter of diesel, we might have hoped for aid up to 23 cents.
- It would be wrong to say that we are not feeling the effects of government measures. Without the aid applied since March 19, Belgians would have paid 17.5 euro cents more for each liter poured into their tank. For a motorist who fills up with 50 liters per week, that’s a saving of 87.5 euros since March.
- Without the discount currently practiced by the State, the maximum price at the pump would not be 2.083 for diesel but 2.258 euros. Gasoline 95 would be at 2.13 euros per liter instead of 1.957 currently.
- There is no question of applying reverse ratchet in the future, given that there is already an equivalent reduction in excise duties which is practiced. Legally, Belgium cannot fall below a certain level of excise duties: 330 euros per square meter. In short, even if Belgium wanted to completely deprive itself of fuel taxes, the law forbids it.
Diesel down
While the price of gasoline reached a new record on Tuesday, the price of diesel is falling. From Wednesday, it will take a maximum of 1.97 euros per liter for this fuel, a drop of 11 cents, it emerged on Tuesday from the publication of the maximum prices of the Directorate General Energy of the FPS Economy.
The SPF still indicates that the price of fuel oil will increase by six cents on Wednesday. It will be necessary to provide 1.22 euros per liter for a heating diesel order of less than 2,000 liters and 1.19 euros for a quantity greater than this threshold. Extra fuel oil (diesel oil) has experienced a similar trend, rising to 1.24 euros per liter for an order of less than 2,000 liters and 1.21 euros for anything exceeding this total.