Fuel sales volumes increase in France amid concerns over shortages and price increases

A spike in fuel sales across France is prompting worries of an increase in petrol prices, with some service stations seeing up to a 50% increase in business at the start of the week.

The price per litre of SP95-E10 petrol was 5c higher on Wednesday (March 4) than last Friday (February 27) for example.

Finance Minister Roland Lescure has called on drivers in France to act calmly and not stock up in excess, as a sudden drop in supply would inevitably lead to further price hikes.

“I have asked the DGCCRF [Directorate General for Competition, Consumer Affairs and Fraud Control] to conduct checks" on fuel prices across the country, he said to FranceInfo.

The government will "ensure that the price increases are… reasonable given the rise in the price of a barrel of oil,” he added. 

Stocking up in excess can lead to artificial supply issues, namely stations running out of stock when plenty of fuel remains nationally, because of an influx of customers.

France has a constant three-month supply of fuel, as per EU stipulations, however this could deplete quicker if there is an influx of fuel purchases. 

Are price increases inevitable?

Commentators have said that increased petrol prices are ‘inevitable’ if conflict continues in the Middle East.

Disruption to the Strait of Hormuz – responsible for around one-fifth of both global oil and liquefied natural gas shipments – leads to a knock-on effect on fuel prices, with experts predicting increases of up to 20c per litre if crude oil costs reach $100 per barrel. 

However, the government is attempting to downplay concerns. 

It is “far too early to draw definitive conclusions,” said government spokesperson Maud Bregeon, who pointed towards the “great unpredictability of the conflict's scope in time and space.” 

Calls for tax reductions ‘premature’

The spokesperson also kept quiet when questioned on potential aid measures the government may introduce if fuel prices rise, saying it was “much too early to talk about that.” 

Following the outbreak of the War in Ukraine, fuel duty payouts for low-income and working households and an ‘energy shield’ to limit bill increases were rolled out, costing billions.

Ms Bregeon said the call by the far-right Rassemblement National to drop VAT on fuel, heating oil, and gas from 20% to 5.5% was ‘premature.’ 

This is a policy the party has been in favour of for several years.

“Faced with the risk of soaring energy prices due to the situation in the Middle East, the French government and the European Union must anticipate the consequences for the daily lives of French citizens now,” said Rassemblement National leader Jordan Bardella on X.

“It would be untenable for the State to enrich itself at the expense of the French people by taking advantage of the international crisis,” he added.

The government spokesperson however said reducing the tax now would lead to a budgetary shortfall of around €20 billion.