Market
France makes diesel cheaper with fuel from its strategic reserve
Since 1 November, diesel has been cheaper at French pumps because the state is selling diesel from its strategic reserve to distributors at cost. How much you notice depends on the station, and petrol is not included.
France is selling diesel from its strategic reserve to fuel companies at cost. Prime Minister Sébastien Lecornu announced this in early October and agreed the terms with distributors on 12 October.
It covers 10 million barrels, spread over three months until the end of January, and has applied at the pump since 1 November. The government expected a drop of 12 to 18 cents per litre.
The scheme applies to road diesel, diesel for farming, fishing and construction, and heating oil. Petrol is not included.
What the decree sets out
A decree of 23 October lets the stockholding agency SAGESS sell up to 1.6 million cubic metres of diesel at the weighted average purchase price until 31 January 2027.
Buyers must pass the benefit on as soon as possible, in full by 31 March 2027. Before each sale, stations must show the price cut per litre.
Stations differ
On 3 November, Commerce Minister Serge Papin said 6,000 of the 10,000 French stations had cut their diesel price, 4,000 of them by more than 15 cents. An AFP analysis of 8,817 stations found an average fall of just over 10 cents since the middle of the previous week.
The big chains received reserve diesel sooner than some independent stations. A station still holding a lot of diesel bought in late October can only buy cheaper fuel and pass on the cut later. Mobilians, a trade body, says some stations saw sales fall 20 to 40 percent. The government offers them a loan without interest.
If you drive a diesel car through France, you benefit while the scheme runs, but not equally everywhere. The cut shown at each station tells you how much is passed on.
