the possibility of selling at a loss will be effective from “early December”; “compensation measures” for independent service stations

The possibility for distributors to temporarily sell fuel at a loss, promised by Elisabeth Borne, will be “effecti[ve] from the beginning of December » And “ will last six months »in any case according to the proposal that will be made by the government to parliamentarians, announced Bruno Le Maire, Monday September 18. “I hope for the 1er December, since the text of the law will be examined in the Assembly at the beginning of October »he said on France 2.

His clarification comes after the announcement of such a possibility on Saturday by the Prime Minister, in an interview with Parisian. While selling at a loss has been prohibited by law since 1963, the government wishes to temporarily authorize it in order to help the French cope with inflation which persists and results in fuel prices which rise in fuel stations. service.

“With this unprecedented measure, we will have tangible results for the French, without subsidizing fuel”promised Saturday Mme Borne, ensuring that thus “ everyone takes their part”. “ It is normal to involve large industrialists,” she affirmed, while recalling that “the responsibility of the State is also to reduce its deficit and its debt”. “Our method is to engage everyone, all economic players, in this fight against inflation”specified Bruno Le Maire on Monday, because “the State cannot bear the cost of inflation alone, otherwise it will widen the deficits”.

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A presentation of the system at the end of September

The professional union Mobilians, representing 5,800 service stations excluding supermarkets, immediately announced that Bercy had committed following an emergency meeting to establishing “compensation measures” for independent service stations. The Minister of the Economy, the Minister of Energy Transition and the Minister Delegate responsible for SMEs, trade and crafts have committed to setting up a “support plan for traditional service stations”including in particular “compensation measures”announced Mobilians in a press release, “congratulating” of their listening.

Shortly before, Francis Pousse, president of the service stations and new energies branch of Mobilians, had expressed his indignation to Agence France-Presse: “My members live 40, 50%, or even more, from the sale of fuel, so if they sell at a loss I give them three months [pour mettre la clé sous la porte]. » He also said to himself “skeptical” on the beneficial effect of this measure on the purchasing power of the French, faced with the rise in food prices which, according to him, weighs more on their wallets.

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The system will be presented to the Council of Ministers on September 27, said the office of government spokesperson Olivier Véran. It will be part of the bill on commercial renegotiations between industrial suppliers and distributors. The deadline for the system to come into force set on Monday by Bruno Le Maire is explained by ” the weather [que le texte] be adopted » by the National Assembly and the Senate. For individuals, such a commercial operation could represent a saving of“half a euro” per liter, estimated Mr. Véran, interviewed on RTL on Sunday.

The price of unleaded 95 up 8% over two months

The government continues to point out the external causes of this increase which is hurting the wallets of the French. As of Friday, September 8, the liter of unleaded 95 stood at 1.96 euros on average, up 8% over two months; and that of diesel, at 1.88 euros (+ 13%). To avoid a return of a liter of fuel to 2 euros, many distributors have carried out fuel sales operations at cost price in recent months. Most had committed last week to continuing them until the end of the year when they were summoned by the Minister of Energy Transition, Agnès Pannier-Runacher.

Although it has ruled out a general rebate at the pump, as it did in 2022, the government has for weeks continued to multiply announcements and calls for “solidarity” distributors and suppliers, in order to make them extend this type of operation. Last week, TotalEnergies, which manages a third of the nearly 11,000 service stations in France, responded by announcing to extend the cap on the price of gasoline to 1.99 euros per liter in its stations, beyond from the end of 2023.

Criticisms of oppositions

The measure announced by the government was not unanimous among the political opposition either. The National Rally is unfavorable to the measure, according to the group’s vice-president in the Assembly, Sébastien Chenu, questioned Monday morning on Public Senate. “ This measure will lead to two things: large groups will fill their pockets and independent gas stations will close”, “it’s bullshit”he said, adding that “the problem is the margins that large groups make and these are the taxes [sur le carburant] ». “We want a reduction in taxes”, he recalled.

For La France insoumise also, this measure is a “joke”squeaked Mr. Bompard on Sunday on France 3. According to him, it benefits distributors more than households. He instead defended a price freeze, “around 1.50 euros” the liter. For the “rebellious” deputy and president of the finance committee, Eric Coquerel, the measure will cause “a disruption which benefits mass distribution”. Selling at a loss “can respond to a very short-term challenge. (…) One of the disadvantages is that there is no targeting” households, reacted Monday Marylise Léon, general secretary of the CFDT, on Franceinfo.

Read also: Fuel prices continue to rise in France and are getting closer to 2 euros

If the measure is passed by Parliament, the question will be how many service stations will use it, and to what extent the gap will widen between independent stations and large supermarkets. The latter have more means to lower costs. Above all, they use gasoline as a loss leader, in order to attract customers.

The World with AFP


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