the essential
Fuel prices have been falling for several weeks. They reached their lowest level in a year. But that won’t last as the summer holidays approach.
You must have noticed it when refueling: fuel prices have been falling regularly for several weeks. Average prices in France are €1.843 per SP95; €1.813 for the SP95-E10; €1.897 for SP98 and €1.694 for diesel, according to carbu.com statements. Gasoline and diesel have reached their lowest level in a year even though prices remain high.
Several reasons explain the drop in prices at the pump over the past three weeks. Firstly, there is the maintenance of fuel supplies despite the geopolitical context in the Middle East. Then there is the slowdown in global economic growth which is leading to a drop in demand for oil.
Result: since the beginning of June, the price of Brent oil has fallen below $80 per barrel. But since the start of the week, prices have started to rise above $80.
The more expensive fuel for the summer holidays?
When the summer holidays approach, the demand for oil is higher and prices traditionally rise. Prices displayed at the pump should therefore experience slight increases at the end of June. “Every year, in good weather, it’s the period when everyone takes out their car, drives a lot and, in fact, consumes a lot,” explains Salomé Ruel, professor of logistics management at TF1 Info.
Another factor to take into account. When the war in Ukraine broke out, distributors’ margins were severely compressed. These same distributors could choose to rebuild their margins, instead of reducing prices for motorists, and thus not fully pass on the drop in international oil prices, Anne-Sophie Alsif, chief economist at BDO France, explains to Auto Plus.
What will distributors and mass distribution ultimately choose? Response within a fortnight…
