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Fuel: what is the distribution margin? News from Auto Plus in your smartphone News from Auto Plus in your mailbox

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Fuel: what is the distribution margin?  News from Auto Plus in your smartphone News from Auto Plus in your mailbox

Will fuel always be this expensive? This is a question that everyone has been asking for a long time, and to be honest, it is more than valid. And not for nothing, with the start of the war in Ukraine, the prices of gasoline and diesel fuel rose sharply, and even exploded. A liter regularly exceeds the two-euro mark, especially after the government stopped all subsidies, such as discounts and allowances of 100 euros. True, TotalEnergies has decided to cap prices at 1.99 euros per liter, but this is still far from enough for motorists.

High margin?

All the more so Fuel prices fell across Europe, except for France. According to the Association for Consumption, Housing, Habitat (CLCV), this explains ” extremely high gross margin from early 2023“. The organization indeed condemns the increase of the latter by distributors to compensate for the shortage, and demands a reduction in the price of gas by 10 cents. For her, this amount corresponds to the profit received on each liter. However, she explains that “ these explosive stocks are no longer justified“.

what amount

But then what is the actual amount of the distributor’s margin? According to UFIP, the French Union of the Petroleum Industry, they will return about 15 cents per liter. However, since the beginning of the year, they would prefer to be around 25 cents. Some dispute this, such as Leclerc, who says he pays back just 1-2 cents on every liter of fuel. It remains to be seen if brands will drop their prices or introduce promotional deals in the coming weeks…

Author: Mary Lizak
Source: Auto Plus

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