The government ready to once again draw on strategic stocks to maintain prices at the pump

Good news, prices at the pump are falling. In half of the French stations, it is at least 20 cents per liter of diesel, Wednesday November 11. Which leads, according to government data, to an average price of around 2.20 euros per liter.

This is a direct effect of the release of part of the strategic stocks initiated by the government around ten days ago. Started on November 1, the operation consists of selling ten million barrels of diesel at cost price over three months, i.e. until January. This exceptional measure was decided to counter the surge in fuel prices and energy in general, caused by the war in the Middle East.

Also read: Map Follow live the explosion in the prices of gasoline, diesel and stock shortages at service stations in France But we have not found the prices before the war in Iran. The price of a liter of diesel remains more expensive than at the start of the American strikes, between 35 and 60 cents more in 90% of stations. On the gasoline side, here too, we are still far from the pre-war level, even if the price of unleaded 95, the fuel most used in France, has also fallen a little in recent days.

However, gasoline is not affected by the release of strategic stocks. But the easing is mainly due to oil prices on the wholesale markets: the barrel of Brent has fallen back below 100 dollars. On Tuesday, it even fell below $90, a drop of almost 25% in one week.

The American elections have calmed things down a little and reassured investors. The government plans to release another 90 million barrels. The downward movement should continue in the coming days with the arrival of stocks at discounted prices in stations which have not yet emptied their tanks. One thing is certain, the government does not intend to let pump prices rise, because that will boost inflation.

While he is trying to calm the social crisis, there is no question of taking the risk of fueling discontent with a new surge in prices. This is why, according to Serge Papin, the Minister of Commerce and SMEs, the government is ready to once again release strategic stocks of diesel, if it is still necessary to cushion the impact of a future price increase. According to the minister, around 90 million barrels could be released in the coming months.

The decision will be taken in January depending on the evolution of prices on the markets and the situation in the country.

Machine-translated from French