France economy minister says ‘a little more time’ needed for fuel prices to drop to €1.70

Fuel prices have begun to fall as tensions in the Middle East ease following a peace agreement and the promise of the reopening of the Strait of Hormuz.

Economy Minister Roland Lescure described the reopening of the Strait — a strategic maritime route through which around 20% of global oil flows pass — as a key factor that should help stabilise global oil flows and ease pressure at the pump, speaking on RTL radio.

Diesel prices have already fallen significantly compared with the €2.40 per litre peak recorded a few weeks ago, and now stand at around €2 per litre for the first time since early March. 

President Emmanuel Macron had also expressed cautious optimism that further decreases could follow as tensions in the Middle East ease and prospects improve for the reopening of the strait.

However, Mr Lescure remained cautious about a rapid return to lower prices. “We’ve gone two-thirds of the way down,” he said, adding that while progress has been made, “it will take a little more time” for fuel to return to earlier benchmarks.

Impact of peace deal 

Iran and the US signed a memorandum of understanding earlier this week that it is hoped will lead to a permanent peace deal to end the war, with a signing ceremony scheduled for Friday, June 19, in Geneva.

Under the terms of the memorandum, Iran promised to reopen the Strait without tolls for at least 60 days. But shipping experts say it could take weeks to clear the backlog of ships in the Strait.

In his comments earlier this week, Mr Macron acknowledged this fact, noting that it would take several weeks for global supply chains to fully adjust before the impact is seen at the pump. This is because fuel prices typically follow changes in oil markets with a delay due to logistics, stock levels, and distribution contracts.

Before recent tensions in the Middle East pushed prices higher, fuel in France was close to €1.70 per litre. Mr Lescure said that, for now, reaching and stabilising below €2 per litre would already represent a significant achievement.

Service stations urged to pass on savings

He also highlighted the immediate benefit for high-mileage motorists, estimating savings of more than €1 per full tank following the recent price drop. The government has urged fuel distributors to pass on price reductions as quickly as increases are reflected at the pump.

Government spokesperson Maud Bregeon echoed the same argument, stating that “in the interest of fairness” it is necessary to pass on decreases as quickly as increases.

“I can’t tell you how many days or weeks it will take for the Strait of Hormuz to reopen, nor how many days or weeks it will take for the tankers, currently blocked, to be able to move freely, but I have noticed that prices have already started to fall, that the price of diesel hasn’t been this low since March 9th ,” Ms Bregeon said in an interview with BFM/RMC.  

The economy minister also referred to the €100 fuel subsidy for high-mileage drivers, which has already been distributed to nearly one million recipients.

The government provides a fuel price comparison service so you can check prices near you.