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Prices at the pump are high and continue to rise. A scenario already known a little over a year ago thanks to the war in Ukraine. However, at that time, faced with soaring prices, the government had implemented a rebate on pump prices. Something he refuses to do again in 2023.
Instead, the executive prefers to put pressure on distributors. This is why they are gathered today for a meeting with government representatives. “An effort of solidarity” will be asked of them. As Agnès Pannier-Runacher, Minister of Energy Transition, testifies:
“Certain distributors have carried out operations at cost price and I will ask them to extend this type of operation because I think that the French do not have the space to pay more for fuel and that is not the type of subject on which these actors must make a significant margin.”
50% of the price of a liter is linked to government taxes
Surprising comments, when around 50% of the price of gasoline and diesel comes from… government taxes! The fact remains that the refining margin is also taking up more and more space. It has jumped 35% in recent months. Even though the price of a barrel is also increasing. The latter has climbed sharply recently, reaching around $90.
A high price, even though the latter was already in a high range, at around 76 dollars. This is before a recent increase. The latter is explained in particular by the decision of Saudi Arabia and Russia to continue to limit their production.
This has the effect of driving up prices. Which increases prices at the pump. Brands have set up operations (capping at €1.99/L at TotalEnergies, cost price at Casino on weekends). But this does not allow you to reduce the price per liter much. We can bet that other solutions will be found quickly.
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To sum up
This Tuesday, September 12, the government is bringing together fuel distributors for a meeting about pump prices. The goal is to ask them for an effort of solidarity in this period of high prices. Even though 50% of the price per liter is made up of taxes…
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