on the price of fuel, the government is managing the emergency in the very short term

The government’s text to curb the rise in fuel prices will be presented at the beginning of October. It will make it possible to waive the law in force since 1963 which prohibits selling at a loss. Élisabeth Borne stressed that mass distribution brands will only be able to sell fuel at a loss “for a period limited to a few months”, the time for prices to come back down. The government spokesperson, Olivier Véran, however, mentioned on Sunday discounts which could go up to 25%, or almost 50 euro cents per liter. In short, this measure should have significant repercussions on motorists’ wallets. But it also shows that for the government, this fuel issue is a puzzle with several unknowns.

The goodwill of mass distribution

Smaller gas stations are unlikely to be able to keep up and risk finding themselves in financial difficulty. The executive is talking about a temporary measure, but it has no visibility on the evolution of oil prices and no means to bring them down. In fact, the authorization of sales at a loss is one more decision which shows to what extent, on fuels, the government is dependent on the goodwill of major retailers. Bruno Le Maire had already obtained from the TotalEnergies group the extension of the liter cap below two euros in 2024, then commercial gestures from other distributors. Basically, the government always seems to be one step behind. He is chasing the rise in prices without being able to really slow it down.

>> Sale of fuel at a loss: it’s “positive”, but “very short term”, reacts the general secretary of the CFDT

No effective tool

To act sustainably on fuel prices and without depending on anyone, the government only has two weapons. The reduction in taxes, which he refuses, because of the calamitous situation of public finances. Or the granting of a new rebate of 15 or 20 cents per liter, which he refuses, also because of the cost, but also for environmental reasons: difficult to subsidize fossil fuels at the time when Élisabeth Borne presents her project ecological planning. The government is therefore reduced to managing the emergency in the very short term. Hoping that this exceptional situation does not last too long.