the government authorizes distributors to sell gasoline “at a loss”

2023-09-16 19:47:38

Prime Minister Élisabeth Borne announced that distributors could sell gasoline ” at a loss “ for a few months to allow them to “lower prices further”in an interview posted online Saturday September 18 on the website of Parisian.

“With this unprecedented measure, we will have tangible results for the French, without subsidizing fuel,” she assured, after recalling that selling at a loss had been prohibited by law since 1963.

The head of government did not accept the opposition’s proposals, which are calling for either a rebate like a year ago, or a reduction in gasoline taxation to deal with the surge in fuel prices, which have reached the bar of €2 per liter.

Anger of the gas station attendants

“Everyone takes their part”she said, ensuring that it “it’s normal to involve large industrialists”while recalling that “the responsibility of the State is also to reduce its deficit and its debt”.

This announcement aroused the astonishment of Francis Pousse, president of the professional union Mobilians which represents 5,800 traditional service stations (excluding supermarkets) including 3,400 stations displaying the TotalEnergies brand.

While TotalEnergies has already capped the price of fuel at €1.99 per liter in most of its stations, Francis Pousse sees this new measure as a response to supermarkets, allowing them to ” to fight “ in this ultra-competitive market, while the market price “will soon exceed €1.99”.

“We, gas station attendants, there is no question of selling at a loss”he told AFP, before adding: “My members live on 40, 50% or even more from the sale of fuel, so if they sell at a loss, I give them three months. » In an already very tense market, he points out that the net margin of traditional stations is “1 to 2 cents” (per liter) in normal times.

What effect on purchasing power?

Francis Pousse also says “skeptical” on the effect of this measure on purchasing power, because if the prices of supermarket suppliers continue to increase, they will not be able to “can’t afford to lose 15 cents on every liter of gasoline”.

He is waiting “quick and firm commitments” of the government to protect its members from this “market deregulation”.