Fuel prices continue to risedevelop over the past weeks, in France, as everywhere in Europe. But with a new discount provided by the state, combined with a discount from the distributor TotalEnergies French fuel has become one of the cheapest in Europe. A rather unprecedented situation, which, however, should not continue.

Prices are one of the lowest in Europe

Thus, at the beginning of September 2022, France becomes one of the cheapest countries in terms of fuel prices. Thus we find a liter of unleaded 95 costs an average of 1.6 euros per liter, when a liter of SP98 is displayed at an average of €1.61 ​​per liter. The indicators are especially low compared to our European neighbors. Portugal, Spain, Italy, Austria and Sweden, for example, show the price of unleaded is 1.80 – 1.85 euros per liter. This is even more true in Germany, the Netherlands, Great Britain and Ireland, where a liter of unleaded often exceeds 2 euros.

Same observation for diesel which is now showing at €1.75 per liter since the start of the week. Here it is again compared to our European neighbors is eloquent. Spain, Italy and Portugal show average prices are around 1.91 euros per liter. Prices are increasing in Germany, Norway, Finland and Sweden prices exceeding 2.15 euros per liter.

Only Poland and some other Eastern European countries have lower fuel prices than France.

A situation that should not last

This unprecedented situation is connected with the fact that France increased aid for fuel prices. Where other European countries have lowered theirs. The help of the TotalEnergies group also allows you to significantly reduce the bill. Some of the group’s stations posted prices below €1.35 per liter for SP95-E10 last week. Lower prices which caused some congestion at the stations.

However, this situation should not continue. On the one hand, from the end of October, the aid will be significantly reduced. The state will increase the discount to 10 centimes from November 1 in metropolitan France to December 31. The same for TotalEnergies, which will spend it discount from 20 to 10 cents per liter from November 1. Thus, in a few days, motorists will “lose” 30 cents of assistance from the price of fuel.

Another threat comes from OPEC countries. It will reduce production of 100,000 barrels per day since October. This decision was taken in order to support oil prices to avoid an excessive fall in prices. But the announcement was made immediately increase in the price of a barrel of oil. The latter is now billed for $94, not $86 per barrel as it was this summer. Although this decision should not have a major impact on the current market, it nevertheless shows that the situation is still very volatile. Either at the level of production or at the level of prices.

Prices reflected in France should remain stable until the end of October. Before returning to the higher levels of 20 to 35 cents per liter and fuel from early November.