We explain to you what is the "ratchet", this system that has allowed the State to bring the price of diesel to the level of that of gasoline

Since the beginning, the yellow vests demand in particular the reduction of the price of the fuels. Today, our finance minister does not say that he is completely uncomfortable with abandoning the ratchet system. How does this system, which has allowed the state to reduce the price of diesel to that of gasoline, work?

To understand what a ratchet is, first understand what a liter of fuel contains. In the price, 1% takes into account the contributions, 11% comes from the distribution. The fuel itself represents 33% of the price. The rest, valued at 55%, represents excise duties and VAT.

Imagine that the price of fuel on the international markets goes down. Rather than having a price that falls in the same proportion, the state will increase excise to ensure sufficient entries. Clearly, as soon as there is a drop in fuel prices on the international oil market, the state increases excise. This is called the "positive ratchet" system. At the pump, you can see a decrease but it is not as important as you had hoped.

Since 2015, the Belgian government has used this system 18 times, in particular to reduce the price of diesel to that of gasoline.

Note that there is also the "negative ratchet" or "inverted". This system could be used today if we wanted to lower the price of fuel. It provides for a reduction in the excise tax to compensate for additional VAT revenues, in the event of an increase in the maximum fuel price above a certain threshold.