12% of French gas stations is running out of fuel. It’s a headline that’s taking over some of the news this week. Although we may think that it is due to a national shortage problem, the cause is quite different, and has to do with discounts.
what has happened. 12% of French gas stations has run out of some type of fuel. The figure, however, has not stopped growing: according to the French government, on Wednesday it was already 18% of the total of stations in the country — almost one in five — that reported a shortage of at least one type of fuel.
Specifically, 66% of the stations belonging to TotalEnergies announced yesterday Tuesday that their service stations were running out of fuel, highlighting that they were mobilizing to resupply the affected gas stations.
Why has it happened. Fuel prices in France have skyrocketed above two euros, so TotalEnergies decided to apply as a ceiling measure a maximum price of 1.99 liters for gasoline and 2.09 euros in the case of diesel.
These rates, notably lower than those of the rest of the distributors, triggered demand with an “infrequent influx” according to the French executive. The result was predictable: queues accumulated at Total stations while the rest of the gas stations operated normally. Translation? There is no fuel shortage in France: there is a logistics problem concentrated in a single network that could not absorb an extraordinary volume of demand. Given the situation, TotalEnergies has decided to extend the measure until the end of April, although adjusting the diesel cap to 2.25 euros per liter.
Why is fuel so expensive in France?. Below the Netherlands, Denmark and Germany, where climate taxes are especially high, we find France. A country with quite aggressive taxation with fuel, and in which the increase due to the war in Iran is especially affecting.
On top of that already high fiscal base, the conflict in the Middle East has acted as an accelerator. The tensions around the Strait of Hormuz have pushed the price of a barrel up, and France, which does not produce significant crude oil of its own, absorbs it entirely.
What’s coming The French industry expects a rapid drop in fuel prices if the ceasefire in Iran is consolidated — this was anticipated this Tuesday by sources in the sector. But until that happens, the French face a scenario of record prices, gas stations with queues and a summer that looks expensive for those who depend on the car. TotalEnergies has bought some time with its price cap, but the underlying solution is not in the hands of any oil company.
In Xataka | As soon as the war in Iran began, Spanish gas stations had already done something: start raising prices
GIPHY App Key not set. Please check settings