Fuels: gasoline prices still at their lowest in 2023

Will the respite be short-lived for French motorists? Prices at the pump have been decreasing for several weeks now, according to calculations by Fig Data, based on public data from the Ministry of Energy Transition. This clear reduction comes at the right time, shortly before the end-of-year holidays, while the economic context remains tense, with inflation at 3.4% for 2023 and prospects darkened by the outbreak of conflict in the Middle East. which raises fears of a new oil shock and a massive rise in prices.

Also read: Gasoline or diesel: where to find the cheapest fuel?

In detail, a liter of unleaded 98 costs on average 1.8691 euros, or two cents less in a fortnight and its lowest level in 2023. The trend is similar for unleaded 95 which is worth around 1.8293 euros and for the E10 (1.7880 euros). Diesel seems to be permanently fixed below the €1.80 mark (1.7682 euros).

In summary, over the whole of 2023, the price of the SP-98 fell by 2.2%, like that of the SP-95 (- 0.9%) and the E10 (- 2.5 %). Diesel fuel remains in sharp decline (-7.6%) although it was the most expensive fuel a year ago.

As a reminder, since March 1 and until the end of 2023, the prices of diesel and gasoline are capped at 1.99 euros at TotalEnergies group stations. A gesture made at the request of the government. The Minister of the Economy, Bruno Le Maire, also asked the oil company to extend the discount “beyond December 31”. A request accepted by Total which will apply this price throughout 2024. On the mass distribution side, several brands have announced sales operations at cost price, which has a rather reduced impact because the margins hardly exceed one or two cents, according to sector unions.

These actions come after the failure to authorize “selling at a loss”. The executive wanted the stations to be able to sell fuel below its purchase price but encountered a clear refusal from major retailers. In the end, the government preferred to communicate on “nearly 120,000 operations” at cost price until the end of December.

He also announced, still through the voice of the tenant of Bercy, that the fuel allowance of 100 euros intended for low-income workers will only be granted in 2024 if prices “explode” and approach 2 euros per liter. This compensation only concerned the lowest 50% of households but would be expanded if it was activated in 2024.

Prices at the pump follow changes in the barrel of Brent. The latter reached its annual record at the beginning of the fall at $96.55 at the close in London before falling again. This was without taking into account the outbreak of a new conflict in the Middle East, between Hamas and Israel, which aroused market concern and a surge in prices in a context already weighed down by Saudi and Russian. However, oil has since experienced a sharp decline, due in particular to fears about the Chinese economy. The recent announcement of major cuts in production for 2024 by OPEC as well as the tensions in the Red Sea linked to attacks by the Houthi rebels have, however, caused the prices of black gold to pick up again. A barrel of Brent is worth $80.06 this morning in London.