Fuels: slump in aid, reduction in oil production… after the scarcity, the rise in prices?

While gas stations face supply problems, the issue of fuel prices is one of the keys to the problem. 40 million motorists call on the government in Midi Libre.

This is one of the keys to the supply problems experienced by 15% of petrol stations in France: in addition to the fear of shortages, against the background of a strike in several refineries, “the tension has to do with the fact that motorists want to go to Total because it is cheaper, emphasizes Pierre Chasseray, general representative of 40 million motorists. There is no shortage of stations at € 2.20 per litre!”

A problem that should increase in the coming months.

The discounts will melt

The fuel price discount announced by the government will be modulated in two phases, according to a decree published in the Official Gazette on August 23: it is currently 30 cents per liter, and this, until October 31, then it goes from November 1 to December 31, 2022 back to 10 euro cents per litre. In concrete terms, the discount is applied by wholesalers who distribute fuel in filling stations. The State then pays them a subsidy corresponding to the volumes delivered.

Problem: the discount granted by TotalEnergies, under pressure from the government, will be simultaneously increased from 20 to 10 cents from November 1 to 10 cents to end on December 31, 2022, unless further notice is given.

“In the night of October 31 to November 1, there will therefore be a rapid increase in fuel prices, underlines Pierre Chasseray. Motorists will refuel earlier and accentuate this shortage in the middle of the All Saints’ Day holiday. We have to understand them, it is a basic need and they need cheap fuel.”

Oil production is falling

If no new support is announced, motorists will therefore again pay for fuel at the (very) high price from 1 January.

Especially since OPEC+ oil-producing countries simultaneously decided on Wednesday to cut production sharply so that prices remain high, much to the annoyance of Westerners.
Ahead of this announcement, prices have started to rise in recent days.

The attraction of 40 million motorists

The price of Brent Crude rose another dollar to $94.37 on Thursday. But far from the record 132.60 € at the beginning of the war in Ukraine, which had given a liter of fuel for more than 2 €, La Dépêche recalls.

Faced with this double phenomenon, 40 million motorists are calling on the state to “play its part, with at least the renewal of state support, but above all with a reduction of VAT on fuels to 5.5%”, asks Pierre Chaseray.