Fuel prices at lowest since 2022 in France, will the trend continue?
Lower global demand and a strong euro has seen prices drop
Lower prices have been a boost for those driving and returning from summer holidays
Leitenberger Photography/Shutterstock
The cost of refuelling your vehicle in France is now at its lowest point in nearly two years.
Despite other costs for drivers – such as insurance and repairs – continuing to rise, petrol prices have been falling for much of the summer.
Read more: Car repair and insurance costs on the rise in France
Statistics from the Ministry of Ecological Transition show in the last week of August, fuel prices – €1.61 per litre for diesel, €1.72 a litre for SP-95-E10 petrol – were the lowest since December 2022.
In addition, prices in December 2022 went down because of a government rebate on fuel.
Prior to that, you have to go back to January 2022, before the Russian invasion of Ukraine, to find prices so low.
Why are prices so low?
The price per litre of fuel has dropped partly due to a reduction in demand.
Despite instability in the Middle East, the largest oil-producing nations are still making the same number of barrels per day and have not seen performance drop.
At the same time, demand for oil is temporarily falling, particularly in China.
However, a secondary reason is the strength of the euro – which is currently appreciating – helping to reduce the cost of purchasing oil and therefore prices at stations across the continent.
Service stations in France have been quick to respond to dropping prices, displaying the updated cheaper costs as quickly as possible in efforts to entice customers to fill up, said Francis Pousse, President of Service Stations and New Energies at Mobilians.
Price drop may not last
However, drivers should not get used to reduced prices too quickly.
Economists are predicting that demand in China will rise in the coming weeks, reducing the overall supply and seeing prices rise once more.
Service station managers may have caught sight of this – TotalEnergies recently announced a new lower €1.95 per litre cap on all fuel at their pumps for customers who have a gas or electricity contract with the company.
Read more: TotalEnergies customers to benefit from lower car fuel cap at French pumps
This was announced despite prices currently being around 20c lower than the cap – a potential sign that the company believes prices will quickly swing the other way.
TotalEnergies also said they may continue to keep a general €1.99 per litre cap on fuel for all drivers past the current December 31, 2024 deadline, but has not officially confirmed this.
