Between May 2016 and October 2018, the price of a barrel of Brent crude in euros rose from €43 to €74, an increase of 62%. Since October 9, 2018, there has been a sharp correction of 28%. The impact on consumer prices (on average 9% of total French consumer spending) is nevertheless significant: since 2016, the price of a liter of diesel has risen by 52% (from €1 to €1.52), and the price of gasoline (SP95) by 15%.
In this report, BSI Economics presents a method for indexing the deduction of actual expenses to changes in the price of a barrel of oil within the framework of the mileage scale formula. This solution can mitigate the negative effects of the rise in the price of a barrel of oil on the purchasing power of individuals who are taxable on their income and who opt for the actual expense deduction.
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