More than a year has passed since fuel prices started to rise sharply. In particular, the war in Ukraine and the European embargo on Russian oil, which led to an increase in gas prices. To the extent that gasoline and diesel now play with two euros or even exceed this symbolic bar. This significantly complicates the life of motorists, both private individuals and professionals. Especially since prices fell everywhere in Europe, but not in France. What annoys the government that even stepped up to change something.

The French are punished by supply interruptions at service stations.

Thus, the government continues the discount of 30 centimes/l at gas stations until mid-November.@TotalEnergies also extends its discount of 20 centimes/l for the same period. pic.twitter.com/u7EdYWGliB

— Elizabeth BORNE (@Elisabeth_Borne) October 16, 2022

High margin?

There are several reasons for this trend. But for the association Consumption, housing and living environment (CLCV), mainly the problem will arise due to the very high margin of distributors. The organization really condemns the unjustified increase of the latter, as explained by François Carlier, delegate general of our colleagues from Paris. According to him, ” distributors have recovered very high margins in recent months to offset their losses in the second half of 2022 and inflate their profits“. He regrets that the good intentions were very short-lived, as prices have skyrocketed in recent months.

Distributors disagree

Of course, distributors don’t see things that way and defend themselves against the desire to increase their profits. They explain that the price increase is mainly related to strikes and blockades of oil refineries in October and April. This has affected inventory as well as distribution costs. Be that as it may, the price of a barrel of oil meanwhile has plummeted, from more than $120 to about $75 in the last few months. The best strategy remains price comparison and competition.