As fuel prices have surged across France, with a national average of 2.12 euros per liter for SP95 E10 and 2.36 euros per liter for diesel, Corsica is seeing prices that are noticeably lower, contrary to expectations.
Corsica Appears Cheap
Indeed, some service stations on the Isle of Beauty display prices between 1.95 and 1.98 euros per liter for SP95 E5 and around 2.22 euros per liter for diesel. For an island, this is unexpectedly affordable.
Yet the island location of Corsica typically yields higher tariffs, since fuels must be imported and extra costs are involved.
Nevertheless, it’s clear that certain Corsican stations are currently far more advantageous than those on the mainland, and there’s a very rational explanation for this.
Two advantages in Corsica’s favor right now
To be precise, the most advantageous stations currently in Corsica are the TotalEnergies stations, which, like on the mainland, benefit from a cap on fuel prices. That’s why you see TotalEnergies stations being snapped up across France, because fuel is sold at 1.99 euros per liter for gasoline and 2.25 euros per liter for diesel.
But in Corsica, TotalEnergies stations are even more affordable. And there’s an explanation on the VAT side. While the VAT is 20% in France on fuels, the VAT is 13% in Corsica. An aid from the government to help offset the higher cost of living on the islands. Yet by stacking the TotalEnergies price cap with a 7-point lower VAT, fuel prices appear much more favorable than the national average.
And in a context where fuel prices are putting the country under strain, with nascent protests and a president who wants to act first on diplomatic levers rather than fiscal ones to restore a more sustainable pump price, Corsica shows that it is possible to tax fuels less—at least temporarily—to help consumers cope with rising costs at the pump.
Furthermore, taxes—being fixed percentages of the price per liter—mean that pricier fuel generates more revenue for the state. A shift in fuel taxation could be considered to bolster the purchasing power of French citizens and the broader economy, without creating a sizable hole in state revenues. The question now is whether the executive branch will back such an idea, an idea also championed by the opposition calling for a 5.5% VAT on fuels, just as for essential goods.
