Romain Rouillard / photo credit: JUSTINE BONNERY / HANS LUCAS / HANS LUCAS VIA AFP 18:07 pm, May 04, 2023

In France, the average price per liter of unleaded 95 is nearly 1.88 euros, 6% more expensive than before the outbreak of the war in Ukraine. High tariffs that contrast with those of our European neighbours who are gradually returning to pre-crisis levels. How to explain this hexagonal specificity?

In May 2023, going to the pump in France remains a test for the wallet. And if TotalEnergies caps the liter of gasoline and diesel at 1.99 euros in its service stations, finding other distributors above the 2 euros mark is not incongruous. On average, unleaded 95 stands at 1.878 euros per liter in France, according to the Ministry of Ecological Transition, 6% more than before the outbreak of the conflict in Ukraine. 15 months later, prices remain very high in France while a downward trend is observed in most of our European neighbors and the price of a barrel of oil has returned to its pre-crisis level. In Germany, the price of a litre of gasoline, excluding tax, is even slightly cheaper than in February 2022.

The France consumes more biofuel

But the France and its motorists have specificities. In France, gasoline vehicle owners drive more SP95-E10 which contains, as its name suggests, 10% bioethanol. A fuel of plant origin whose price soared at the beginning of the year. "With the war in Ukraine, the price of agricultural raw materials has exploded and remains high to this day," said Olivier Gantois, president of the French Union of Petroleum Industries (UFIP). The liter of super ethanol also recorded a significant increase at the beginning of the year, appearing at nearly 1.20 euros per liter while in normal times, it rarely exceeds the symbolic bar of 1 euro.

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But this simple explanation alone cannot decipher the phenomenon. In France, as in all EU countries, energy distributors (electricity, gas and therefore... fuel) are subject to Energy Savings Certificates which impose certain environmental obligations on them. In France, this regulation takes a very particular form. "Distributors must demonstrate that they have made energy savings for customers. They must prove that they have participated in a program to insulate a house or replace a boiler," explains Olivier Gantois. Note that a fuel distributor, for example, may very well participate in a project far removed from its primary activity. "And that comes at a cost. In addition, this average cost has increased over the past year because the objectives are higher. Each operation becomes more expensive," adds Olivier Gantois.

The impact of strikes in refineries

Finally, the France had to accept in the front line the embargo on Russian oil, which came into force on 5 February. If the measure concerns the entire European Union, its impact is particularly visible in France which, in 2019, was at the top of the countries with the most diesel consumption on the Old Continent. "The France imported nearly 30% of its diesel from Russia in 2021," recalls Olivier Gantois. Paris must therefore obtain a quantity of supplies from other suppliers, at a higher price.

Finally, the tense social context of recent months in France, and the resulting strikes in refineries, have forced France to import some of the gasoline it normally produces in sufficient quantities. Enough to mechanically increase the bill at the gas station. According to data published by the European Commission on May 1st, only Denmark and Finland have higher rates than the France at the pump, despite a (very) slight decrease observed in recent weeks in France.