Fuels: distributor margins reach “not acceptable” levels, according to the CLCV association

The gross margins of fuel distributors have been on the rise since this fall, once again reaching “not acceptable” levels, estimates the consumer association CLCV in a report published Thursday. Distributors, under pressure from the government and consumers, committed at the beginning of summer 2023 to reduce their gross transport/distribution margins deemed “excessive” by exceeding more than 25 cents per liter of fuel. “Unfortunately, they increased again from November,” notes the CLCV.

This margin increased in January to 26 cents per liter of SP95 gasoline and 22.2 cents per liter of diesel, according to the association, while the annual averages for 2018-2021 from the federation of petroleum industries generally placed it at the around 15 cents. “These excessive levels are not acceptable,” judges the CLCV, which is based on data from the Ministry of Ecological Transition.

In 2022, this margin - or the difference between the price excluding taxes of fuel and the price leaving the refinery - had fallen to very low levels, distributors having chosen not to pass on the entire rise in crude prices following the Ukrainian crisis. Asked about the price catch-up at the start of 2023, they explained that they were passing on an increase in their distribution costs linked to the refinery strike during the mobilization against pension reform. Since the summer, prices at the pump have fallen due to the fall in the price of a barrel. This decline “could have been more significant if the transport/distribution margins had been maintained”, points out CLCV.

The association “underlines the need to question the fair remuneration of distributors”. She calls on them “to respect their commitment not to practice excessive margins and to make an effort of around 5 to 8 cents per liter”. The association is also interested in the impact of the cost price operations carried out this fall, and notes “significant disparities”. Analyzing the prices charged from September 29 to October 13, it estimates that the major retail brands (Leclerc, Intermarché, Système U, Carrefour) and the discounters of oil groups (Esso express, Total access) “played the game by lowering their prices by 3 to 6%. On the other hand, the oil tanker brands (Total, AVIA) offering much higher prices “have not made a significant effort”, she adds.