Home Automobile Selling fuel at a loss: where are we? Auto Plus news in your smartphone Auto Plus news in your inbox

Selling fuel at a loss: where are we? Auto Plus news in your smartphone Auto Plus news in your inbox

0
Selling fuel at a loss: where are we?  Auto Plus news in your smartphone Auto Plus news in your inbox

This is a measure that has been in the news for almost a week: The government wants to allow unprofitable fuel sales, since December A measure that comes at a time when the price of fuel has exploded in recent months. A liter of diesel has risen to an average of €1.90 compared to €1.44 before Covid (according to INSEE). Same story with unleaded 95. Expect an average of €1.93 per liter today, compared to €1.48 4 years ago. To overcome this, Last year, the Government introduced a fuel discountwhich for this year 2023 has been transformed into fuel compensation in the form of a €100 check paid to the most modest households.

Sell ​​at a loss to unload the French purses

Measures that are still considered insufficient by most French people. This summer, the state obliged the TotalEnergies group to make a commercial gesture. This led to a price cap at stations of €1.99 per litre, which is still in place today. To go further, although the practice has been banned in France since 1963, selling at a loss is the only solution the government has found at the moment. This would allow fuel distributors (TotalEnergies and mass distribution networks). sell fuel cheaper than the price they bought it for. The idea would be to offset this drop by increasing purchases at their stores and stations…

TotalEnergies, Carrefour, Système U, Leclerc and Les Mousquetaires

Let’s not drag out the tension for too long: it is nothing to them all! Gathering at the round table with the ministers, the representatives of the group noted that they will not support the Government regarding this controversial measure. Carrefour, Système U, Leclerc and Musketeers (Intermarché) everyone let it be known. Philippe Michaud, co-president of the Leclerc group, for example, stated: “Our companies are not designed to sell at a loss. We will not sell fuel at a loss.” It’s the same at TotalEnergies, group boss Patrick Poignant responded to the Quotidien journalist rather angrily: “Do you often sell products at a loss? […] A little common sense, that’s all, thanks.” One can only wonder how the state will get out of this situation: will it abandon the idea, or will it force the relevant distributors to do it?

Read also:

Fuel: CGT warns of shortage risk

Why stockpiling fuel is not a good idea

STO: Total makes a radical decision

Author: Quentin Panno
Source: Auto Plus

LEAVE A REPLY

Please enter your comment!
Please enter your name here