French fuel prices ‘should drop by 10c’ at thousands of service stations today
Caution over long-term drops due to market volatility remain
Smaller service stations may not see prices drop until the start of next week
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Fuel prices are expected to drop by at least 10c per litre at thousands of petrol stations today (April 11), say government officials - but they are also issuing reminders that the situation remains volatile and drops may not last.
“Price reductions should be reflected at the pump starting tomorrow [Friday] for stations with high sales volumes, and a little later for smaller stations, around Sunday or Monday,” said Trade Minister Serge Papin on Thursday evening, following meetings with fuel sector leaders.
“We are monitoring the responsiveness of the stations, making sure that the price reductions are passed on,” adding that prices should drop by ‘at least 10c per litre’, Mr Papin said.
The reduction is expected for both petrol and diesel (gazole) fuel.
It comes following the announcement of a fragile two-week ceasefire between the US/Israel and Iran, which should allow some shipping to cross the Strait of Hormuz.
Prime Minister Sébastien Lecornu said yesterday that he expected prices to fall by the weekend following a drop in oil prices.
However, the government is yet to announce how it will ensure prices do indeed drop.
Following the outbreak of the conflict in the Middle East in late February and the ensuing fuel price surge, the government authorised hundreds of checks at fuel stations to assess if prices were fair.
Volatile markets hint at limited price drops
Officials are cautious over expectations of a long-term price reduction, as global markets remain volatile.
Crude oil prices rose on Thursday back above $100 per barrel – down from $92 following the ceasefire announcement – and a backlog of shipping in the Strait of Hormuz may take 10 days to clear.
Long-term price drops are only expected if the market stabilises, allowing for cheaper imports into France.
Finance Minister Roland Lescure pointed towards diesel costs at Rotterdam port, a major site for imported fuel entering the European market.
The price of imported diesel at the port fell on Wednesday, before climbing once again on Thursday as the ceasefire risked an early end following Israeli attacks in Lebanon condemned by Iran.
Unlike petrol – mostly refined on French soil and therefore based on crude oil costs – diesel is mostly imported in its final state into France, making the fuel extremely volatile to price fluctuations.
On Wednesday, diesel reached a record price of €2.398 per litre, based on government calculations at more than 8,000 service stations, but dropped to €2.378 on Thursday.
The map below shows the change in average diesel price across France, updated hourly.
