Dimitri Vernet with AFP 11:47 a.m., January 31, 2023

1.94 euro for diesel, 1.91 euro for SP95... A month after the end of the rebate at the government pump, the price of a liter of fuel is once again dangerously close to two euros.

Why do prices at the pump continue to climb in France?

Road fuel prices rose again in France last week, according to figures released by the government on Monday which show a price increase of between 17 and 27 cents per liter over the past month.

In French service stations, all fuels are approaching the bar of two euros per litre, according to figures from the Ministry of Energy Transition arrested on Friday and published on Monday.

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An increase of around 25 cents in one month

In detail, diesel sold at an average price of 1.9432 euros per liter, or 2.7 cents more than the previous week.

You have to pay 17.6 cents more per liter compared to December 30.

Unleaded 95 petrol increased by 3.2 cents in one week, for an average posted price of 1.9334 euros, and SP95-E10 was up by 3.5 cents, sold at a price national average of 1.9103 euro per litre.

Compared to December, motorists pay more, respectively 25.46 centimes extra per liter for unleaded petrol 95 and 26.8 centimes per liter for SP95-E10.

By comparison, bioethanol or E85, the consumption of which broke a new record last year, was displayed on Friday at 1.1154 euros.

It is sold at about one in three gas stations.

The price of bioethanol is also subject to an increase linked to the increase in agricultural costs and energy prices, in particular gas, which has been passed on in the supply contracts concluded between the suppliers of ethanol and the fuel distributors.

A compensation of 100 euros to be requested

January 1st sounded the death knell of the general rebate financed by the State and which cost 8 billion euros last year.

An indemnity of 100 euros replaced it, which the motorists concerned – it is according to their income – can request on the tax site until February 28.

The aid is paid in one go, for 2023, for those who use their vehicle to go to work.

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Three explanations for the increase

There are three explanations for this increase: the strikes in the fall, the rebate from TotalEnergies and the union mobilization against the pension reform. 

For the first two points, the November strikes considerably upset the market.

With refineries shut down, distributors had to source fuel elsewhere and paid the high price with an immediate impact on prices at the pump.

Paradoxically, the TotalEnergies rebate also had an impact since the competition, unable to match this price reduction, retained all its margins.

This is particularly the case for mass distribution where there are almost no more operations at "cost price".

And distributors should not renew the experience of the cost price, since a decree will prohibit advertising on petroleum products in the coming weeks.