French supermarket boss calls for suspension of energy savings certificates to slash fuel prices
He said consumers could see fuel prices fall by 15 cents per litre with the measure
Mr Leclerc said he had never seen such volatility in fuel prices
Silvia Dubois/Shutterstock.
The president of France’s Leclerc supermarket chain, Michel-Edouard Leclerc, has called on the government to suspend its energy savings certificate scheme, which he said could see fossil fuel prices drop by 15 cents per litre at the pumps.
Suppliers are required to finance the Certificat d'Économies d'Énergie (CEE) scheme, which provides funding to individuals, companies and public bodies, to help reduce their energy consumption, for example, by improving insulation or replacing an oil-fired boiler.
Suppliers obtain the CEE credits by proving they have helped their customers reduce their energy consumption, and can be fined if they do not amass enough. However, suppliers largely pass the costs of financing the CEE onto consumers at service stations.
Mr Leclerc’s suggestion comes after the French government launched a draft decree on Tuesday, April 14, that proposed capping service station profit margins as a way to cap fuel prices.
The move has been widely criticised by leaders in the sector, including Mr Leclerc, who have pointed to a lack of profit due to high raw materials costs, and argued the measure will not translate to a drop in per litre price at the pumps.
France, like many countries around the world, has seen fuel costs soar since the start of the war in Iran, in late February. More than a quarter of the world’s oil is moved through the Strait of Hormuz, which has been severely disrupted.
Countries have implemented a range of measures to limit fuel costs, with some, such as Germany and Sweden, cutting VAT to help consumers.
The French government has ruled out cutting VAT on fuel, saying it does not have the budgetary flexibility to take such a measure.
Referring to the government’s plan to cap service station profit margins, Mr Leclerc said “I don't believe that putting a lid on a pressure cooker will lower the heat”.
He said suppliers could lower fuel prices “by about 15 cents per litre” if they suspended the CEE, which would “cost the government nothing”.
"I have 45 years of experience in the fuel industry, I have never seen… such volatility in fuel prices," he said.
Asked why the government should target an important environmental measure, Mr Leclerc said “it would have no long-term impact, because (many projects) are financed over the long term”.
He said all major fuel retailers in France supported the plan.
“I personally back it because it would help consumers’ purchasing power today.”
