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ENERGY

Swiss drivers fuel a cross-border rift with France

As petrol is cheaper in France than in Switzerland at the moment, many Geneva residents cross the border to fuel up their cars. However France's cheaper prices are ultimately funded by the French taxpayer, and some French officials are none too happy about this 'pump tourism'.

Published: 16 August 2022 11:52 CEST
Swiss drivers fuel a cross-border rift with France
Swiss motorists are fuelling up their cars at French pumps. Image by IADE-Michoko from Pixabay

Geneva area residents have been shopping in nearby France for years, as most goods are cheaper on the other side of the border.

It is not unusual to see cars with Geneva and Vaud registration plates in parking lots of French supermarkets, and this practice, known as ‘shopping tourism’, has been boosting the economies of border regions for decades.

Lately, however, ‘shopping tourism’ has spawned off a new phenomenon dubbed ‘pump tourism’, as an increasing number of cars from Switzerland fill up at French petrol stations with cheaper petrol/gasoline or diesel.

A litre of fuel in Geneva now costs 2.20 francs, while the price is €1.80 just across the border. Given the exceptionally strong franc and favourable (for the Swiss) exchange rate — €1.04 for 1 franc — buying a full tank of gasoline in Haute-Savoie makes financial sense.

READ MORE: Petrol to top CHF2 per litre in several Swiss cantons

But the cheaper pump prices in France are the result of the government fuel rebate of 18 cents per litre – as this is ultimately funded by the French taxpayer, some of the French are none too happy about Swiss motorists benefiting.

Loïc Hervé, a senator from Haute-Savoie, suggested that the Swiss are taking advantage of French state aid on the price of fuel in France.

“We absolutely have to give priority to French people.  We should not be helping out the rich, the Swiss, and foreign tourists. It’s as simple as that”, Hervé, told Tribune de Genève in an interview.

Geneva State Councilor Mauro Poggia swiftly responded to Hervé’s comments, pointing out that cross-border workers from France have been benefiting for years from perks offered by Swiss employers, such as higher salaries.

READ MORE: EXPLAINED: Who can work in Switzerland but live in a neighbouring country?

“And let’s not forget that the French also fill up their cars in Geneva before returning home, and it hasn’t bothered anyone”, he said.

In fact, before Russia invaded Ukraine in February, unleaded gas was less expensive in Switzerland than in France.

The reason this is no longer the case is that France, along with Switzerland’s other neighbours, Germany, Italy, and Austria, have put in place a fuel rebate on petrol and diesel – at present this is 18 cents per litre, but it will rise to 30 cents per litre in September.

The Swiss government was considering a similar tax cut as well, but the Council of States rejected this proposal in June amid concerns about how to compensate for the lost revenue. 

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For members

HEALTH

Reader question: Do I have to pay for prescription drugs in Switzerland?

Generally speaking, medications prescribed by a doctor are covered by healthcare insurance. But this doesn’t mean you won’t have to pay any costs at all.

Published: 30 May 2023 16:29 CEST
Reader question: Do I have to pay for prescription drugs in Switzerland?

As is the case everywhere else, there are two types of medicines in Switzerland: those you buy without a prescription (over-the-counter — OTC) and those who are by doctor’s orders only.

As a general rule, compulsory health insurance (KVG in German and LaMal in French and Italian) reimburses medicines prescribed by a doctor, as long as they are included on the list of drugs officially approved by Switzerland’s regulatory body, Swissmedic — in total, about 2,500 medications.

The list is quite extensive, comprising not only brand-name and generic meds but also many biosimilars — medicines that are almost an identical copy of an original product manufactured by a different company.

Also covered are some alternative-medicine drugs, including homeopathy and physiotherapy. 

What happens when a doctor prescribes a drug that is not authorised in Switzerland?

In principle, the compulsory health insurance will not cover the costs and you will have to pay for it yourself.

However, there are exceptions to this rule.

For instance, even if a particular medication is not approved in Switzerland, but is imported from a country where it is authorised by a body that is considered equivalent to Swissmedic (for example, the European Medicines Agency), then KVG / LaMal will pay for it.

Also, if the cost of a drug is not covered by the compulsory health insurance, and you have taken out a complementary policy, it is possible the latter will pay for it.

These insurance providers have their own lists of medicines which they cover, though certain conditions and limitations may apply.

In general, neither basic nor supplementary insurance will pay for so-called  Pharmaceuticals for Special Application (LPPA). This list mainly includes “comfort” products, for example appetite suppressants or products that reduce hair loss.

READ ALSO: Should you buy supplemental health insurance in Switzerland?

How much of the cost does insurance pay?

As is the case for medical treatments in general, KVG / LaMal will pay 90 percent of the cost of medication for which no generics exist.

If, however, an equivalent generic drug is available, but you still choose the brand medicine, then your insurance carrier will cover 80 percent of the price. This means that you will have to pay either 10 or 20 percent of the cost yourself.

This will happen until you use up our entire deductible (franchise), in addition to your 10-percent share of the costs that exceed the deductible — a maximum of 700 francs per year for adults and 350 francs for children.

If you have a low deductible (300 francs), this means that once you use up 1,000 francs toward your medical costs (doctor’s visits, treatments, and medicines combined), you will then not have to pay anything toward your prescription drugs.

By the same token, if you have chosen the highest franchise — 2,500 francs — and add to it the 700-franc co-pay, you may never get to the point where all your medications will be completely covered by the insurance.

READ ALSO: Which Swiss health insurance deductible makes most sense?

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