World Bulletin / News Desk
France confirmed on Wednesday it would impose a one-off tax on the oil sector to raise some 550 million euros ($693 million), helping depleted government coffers.
"This should, in principle, be a one-off tax," Budget Minister Jerome Cahuzac told reporters at a news conference presenting the amended bill for France's 2012 budget.
The tax, which the new Socialist government said would tap a sector whose margins have been boosted by the sharp rise in oil prices, will hit all owners of oil stocks in mainland France, from refiners to supermarket petrol stations and traders.
The tax will amount to 4 percent of the value of average crude and fuel stocks owned in the last three months of 2011, the bill document showed.
That includes refineries of oil majors such as Total , which had a total net profit of 12.3 billion euros in 2011, and petrol stations owned by supermarket chains such as Carrefour.
However, the targeted French oil distribution industry had a net margin of about 500 million euros last year, according to statistics from the Comite Professionel du Petrole industry think-tank, equivalent to the amount sought by the government.
The head of France's oil industry body UFIP Jean-Louis Schilansky told Reuters last month the tax would be a severe blow for the ailing refining sector.
European refiners have been struggling for years due to poor margins and weak demand for fuel products, prompting Total to shut its Dunkirk, northern France, refinery at the start of 2010 and Petroplus to end refining at its Reichstett plant in eastern France in May 2011. ($1 = 0.7933 euros)
Analysts said that while the downturn in the headline readings was disappointing, the economy continued to put in a strong performance.
Crude prices stabilised after diving more than two percent on Tuesday on increasing fears of a global supply glut, as continued production in the US and elsewhere offsets an OPEC output cut deal.
Move estimated to save company $1B in investment costs
However, most other regional markets struggled after Monday's healthy gains, despite being given a positive lead from Wall Street where the Dow and S&P 500 closed at fresh record highs.
The purchase in one fell swoop gives Amazon, which until now has operated almost entirely on the internet, a big presence in the brick-and-mortar world on Main Street, with more than 450 stores in the US, Canada and Britain.
"The Bank of Russia Board of Directors decided to cut the key rate to 9.00 percent per annum," the bank said in a statement. The cut follows a half-point decrease in late April.
Equity traders have suffered a fraught week as the crisis engulfing Donald Trump picks up pace, technology firms tumbled from recent highs and energy plays were hammered by plunging oil prices.
"In May 2017, passenger car registrations across the EU increased by 7.6 percent to 1.387 million units," ACEA said in a statement.
In the eurozone, Frankfurt's DAX 30 index climbed 0.4 percent to 12,746.05 points, and the Paris CAC 40 gained 0.5 percent to 5,243.53 compared with the close on Thursday.
Eastern Mediterranean gas deposits discussed at high-level meeting in Thessaloniki
While a "rebalancing of the market" was "underway," it was "at a slower pace than originally anticipated," the Organization of Petroleum Exporting Countries wrote in its latest monthly oil market report.