Fuel: Aid falls, oil output cuts…prices rise after shortage?

Fuel: Aid falls, oil output cuts...prices rise after shortage?

While gas stations are experiencing difficulties with deliveries, the issue of fuel prices is one of the keys to the problem. 40 million motorists turn to the government in Midi Libre.

This is one of the keys to the supply difficulties that have occurred at 15% of gas stations in France: in addition to the fear of shortages, amid a strike at several refineries, “the tension is related to the fact that motorists want to go to Total because it is cheaper, emphasizes Pierre Chassret, general delegate for 40 million motorists. There is no shortage at the stations at €2.20 per litre!”

A problem that should grow in the coming months.

Discounts will melt

The discount on the price of fuel announced by the government is modulated in two stages, according to the decree published on August 23 in the Official Journal: it is currently 30 euro cents per liter, and that is until October 31, then it will return to 10 euro cents per liter from November 1 to December 31, 2022. Specifically, the discount is applied by wholesalers who sell fuel at STA. Then the state pays them a subsidy according to the delivered volumes.

The problem: the rebate given to TotalEnergies under government pressure will simultaneously increase from 20 cents to 10 cents from November 1 and will end, in principle, also, unless further notice, on December 31, 2022.

“Thus, on the night from October 31 to November 1, there will be a rapid increase in fuel prices,” Pierre Chassère emphasizes. they need cheap fuel.’

Oil production is falling

From January 1 next year, if no new aid is announced, motorists will once again pay for fuel at a (very) high price.

Moreover, the OPEC+ oil-producing countries at the same time on Wednesday decided to significantly reduce production so that prices remain high, to the chagrin of Westerners.
In anticipation of this announcement, prices have started to rise in recent days.

Appeal of 40 million motorists

The price of Brent Crude rose on Thursday by another dollar to 94.37 dollars. However, it is far from the record of €132.60 at the beginning of the war in Ukraine, where a liter of fuel cost more than €2, reminds La Dépêche.

Faced with this double phenomenon, 40 million motorists are calling on the state “to play its part, at least by restoring state aid, but above all by reducing the VAT on fuel to 5.5%”, asks Pierre Chasret.

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