Decree published in Official Journal

A decree announced by Prime Minister Sébastien Lecornu in early October to outline the economic conditions for releasing strategic diesel stock was officially published in the Official Journal this Saturday. The decree sets the stage for changes in diesel pricing and distribution starting November 1st.

Strategic stock sale details

The decree authorizes the sale of up to 1.6 million cubic meters of strategic diesel stock, equivalent to around 10 million barrels, until January 31. The distribution and pricing of this stock will be determined by a plan to be set by a separate decree.

Expected price reduction for consumers

The government estimates that this release of strategic stock could lower the price of diesel by 12 to 18 cents per liter. Diesel prices have averaged between 2.3 and 2.4 euros per liter since early October, according to government data.

Requirements for distributors

Distributors are required to pass on the price reduction to consumers and inform them before the sale. The decree also allows the price reduction to take effect as early as November 1, 2026, though it is expected to apply sooner.

Unusual sale method for stocks

Typically, the Société Anonyme de Gestion des Stocks de Sécurité (Sagess) makes its stocks available through loans to be repaid within a month. However, this time, the government opted for a sale at the weighted average acquisition cost, which is expected to lower the price for consumers.

Extended assistance for agricultural diesel

A separate decree, also published this Saturday, extends the assistance window for the purchase of non-road diesel (GNR) used in agriculture until December. This aid provides 15 cents per liter to farmers for their work.

Support for late applicants

Another decree will reopen the assistance window for those who missed the initial period, allowing farmers who did not use their full allowance to access the support again for the months of April to June.

Government payments to farmers

According to the Ministry of Agriculture, nearly 74 million euros has been distributed to more than 184,000 farmers through the assistance windows from April to August, showing the significant scale of the support program.

Industry response to price reduction

Following the announcement of the strategic stock release, Patrick Pouyanné, CEO of TotalEnergies, pledged to reduce diesel prices by about 10 cents per liter for individuals and 20 cents per liter for GNR. This would provide farmers with up to 35 cents per liter in support.

Government concerns about mobilization

The government, already dealing with a major crisis involving student protests and yellow vest demonstrations, fears that these price reductions could lead to further mobilization, particularly in the context of autumn agricultural work.