For about 1 month, gasoline prices have been at a long time. The liter of diesel has even passed under the symbolic threshold of 1.60 euros. But how to explain this drop in prices and will it last? We talked about it with Thierry Bros, energy expert and professor at Sciences Po.
fuel prices have been low because in recent weeks, the Brent price has dropped sharply. To this is added a exchange effect: the euro has strengthened against the dollar. The combination of the two means that the Brent, in euros, currently reaches fairly low levels. He has certainly raised a little since early May. But you have to keep in mind that the essence that we buy today at the pump comes from oil bought a few weeks ago, and refined two or three weeks ago. There is therefore a certain lag.
Will these low fuel prices last?
The recent decrease in oil is explained by two factors: on the one hand, OPEC – the organization of oil exporting countries – has decided to put more barrels on the market, which increases the offer. On the other hand, there is a drop in prospects for global growth, largely because of the attitude of Donald Trump, who regularly shakes up the world economy with his declarations and decisions.
So the supply increases while demand may decrease. This imbalance has dropped oil prices.
So, will it last? Difficult to say. If things stabilize internationally, we could find a little visibility. Growth would not necessarily so are soaring, but it could resume slowly. It would be more favorable to stabilization of prices.
Is petrol really cheaper in supermarkets than in total or shell stations?
Essence is a competitive product. It comes from the same refineries, but supermarkets use it as a call product to attract customers. Thanks to this strategy, there is healthy and loyal competition in France. If there were only major oil brands, prices would probably be higher.
And on highways, why is it more expensive?
On highways, stations must buy a concession. This implies service obligations – like staying open 24 hours a day – which have a cost. These costs are passed on to the price paid by motorists.
There are also highway supermarket stations. However, they are often more expensive than those located outside the highway. It is logical: they also support the cost of the concession, even if they belong to a supermarket.
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