The increase was shocking! In just a week, fuel prices have soared in France, reaching their highest level since summer 2022. According to official data released on Monday, March 9, the SP95-E10 jumped from around 1.70 € to 1.83 € per liter, which is 13 cents more. The diesel price, however, rose even faster: up by 29 cents, bringing the average to 1.99 €.
At many gas stations, the symbolic threshold of 2 € has already been surpassed. According to real-time price reports, about a quarter of the stations that updated their prices on Monday were displaying at least one fuel above that level. This means over 1,300 stations out of just over 10,000 in France!
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This spike is currently largely linked to a panic phenomenon. Fearing shortages, many drivers have rushed to gas stations in recent days, driving prices up purely through the game of supply and demand.
A skyrocketing oil price due to tensions in the Middle East
But the increase could especially settle in for the long haul. Ten days after the start of the conflict in the Middle East, energy markets remain extremely nervous. The price of oil has surged by nearly 30% and is now exceeding 100 dollars.Concern is focused on the Strait of Hormuz, a strategic passage through which about 20% of the world's oil and a large portion of liquefied natural gas transit.
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Disruptions in this key area are enough to rattle the markets and cause prices to soar. Now, when oil prices go up, pump prices almost mechanically follow suit. With a delay of a few days or weeks, this rise could therefore still affect fuel prices.
End of the road in France.
Strong measures demanded
This situation is putting the government under pressure. During the surge in energy prices in 2022, following Russia's invasion of Ukraine, the State had implemented exceptional support for motorists, like discounts at the pump. For now, this option is not being considered.
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The G7 countries are considering using their strategic reserves to stabilize the markets and limit a lasting surge in prices. In France, opposition parties are already demanding strong measures. On the left, La France insoumise is advocating for a temporary freeze on fuel prices, proposing a price cap at the pump.
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Towards a price freeze at the pump?
The idea is to prevent prices from exceeding a certain level, for example, around €1.70 to €1.80 per liter, until the energy crisis stabilizes. To make up for the difference with market prices, the government could reduce certain taxes or ask oil companies and distributors to pitch in. Other opposing groups suggest different solutions.
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The National Rally is suggesting a reduction in fuel taxes, which make up a significant portion of the price at the pump. This measure could quickly lower pump prices, but it would also lead to less tax revenue for the state, especially since French public finances are already in a serious state and the deficit remains high.
A government that’s currently taking a wait-and-see approach
The government, on the other hand, is being cautious. The Minister Delegate for Energy, Maud Brégeon, stated that it was « too early to discuss it », while assuring that « all scenarios » are being considered.
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Despite these tensions, industry professionals want to reassure: a shortage seems unlikely. France imports only about 13% of its crude oil from the Middle East and can source from elsewhere, notably in America or Africa. However, if oil prices keep rising, the impact on the wallets of the French could be significant in the coming months.