France does have some wells that extract crude oil, but output is small
Supermarkets are not allowed to sell fuel at a loss, and so have to pass on rises in wholesale prices and operating costs to customersSilvia Dubois/Shutterstock
The jump in diesel prices from around €1.50 to €2.20 per litre as a result of the US–Israeli war on Iran has put the spotlight on France’s fuel infrastructure.
The country’s six oil refineries still in operation, producing petrol, diesel and kerosene, were built in two waves in the 1930s and 1960s. Two others specialise in products such as bitumen for roads and chemicals for plastics.
All are classified by the state as strategic assets, although they are owned and run by private companies.
Total owns five; one is owned by US giant ExxonMobil; one by the joint Chinese–UK company Petroineos; and the last by Rhône Energies, which is in turn owned by two US firms that have promised to refurbish it.
A large refinery is found near Nantes (Loire-Atlantique), another near Le Havre (Seine-Maritime), and there is a cluster of four refineries near Marseille (Bouches-du-Rhône). The other two are near Lyon (Rhône) and Strasbourg (Bas-Rhin).
Pipelines carrying refined petrol, diesel and kerosene run from near Le Havre to Paris, and from Strasbourg to Marseille. Most of the jet fuel for Charles de Gaulle Airport comes from the Le Havre pipeline.
Diverse sources
There are also large regional fuel depots, also privately run but considered strategic assets.
The source of crude oil for refineries is very diverse, which has somewhat lessened the shock from the Middle East conflict. In 2024 – the latest available figures – some 12% of it came from this region, with Iraq supplying 8%, according to the Service des données et études statistiques.
North America provided 23%, with 22% from the US, while sub-Saharan Africa provided 21%, North Africa 11%, East Asia 12% and North Sea oil from Norway and the UK 10%.
The remaining crude oil came from diverse sources, including the French wells, although imports from Russia, which used to account for 5% of crude and 16% of refined oil, stopped in 2023.
Most of the refined oil imported is diesel, with European refineries, mainly in Germany and Poland, providing the majority. However, 33% came from the Middle East, which is why diesel prices in France have been affected more than petrol prices.
US refineries provide around 12% of French diesel, and India 9%, although Indian refineries rely heavily on Middle Eastern crude oil.
At the government’s request, French refineries made adjustments at the end of March to extract more diesel and less petrol in an attempt to ease pressure on diesel.
Taxes on the wholesale purchase price are made up of three elements: VAT at 20%; accise sur les produits pétroliers (formerly known as TICPE or taxe intérieure de consommation sur les produits énergétiques) at 30%, although it can vary between departments; and VAT on TICPE at 20%. Around 2.5% of TICPE is a tax for regional governments.
Payroll taxes for staff at filling stations must also be taken into account.
Professionals can claim back 100% of VAT on fuel for vehicles marked as utilitaire on their registration documents, and 80% on other vehicles, as long as they keep detailed records of distances and fuel used for professional reasons, and receipts showing VAT paid.
Total and Esso own a number of filling stations in France, which are usually more expensive than supermarkets. In March, however, Total promised not to raise prices above €2.10 a litre.
Supermarkets are not allowed to sell fuel at a loss, and so have to pass on rises in wholesale prices and operating costs to customers.
The few remaining independent filling stations in France buy mainly from wholesalers, but do not have the volumes to match the lower prices seen at supermarket pumps.
