Fuel prices are nearing 2.50 euros per liter in some areas of France, according to Dominique Schelcher, CEO of Coopérative U, who spoke on LCI on September 15. He explained that fuel costs vary depending on location and transportation methods. In regions like Alsace, where fuel is transported by truck rather than by barge, higher costs are linked to low water levels on the Rhine River, which limit the use of barges. Schelcher also noted that prices are not uniform, even among stations of the same brand, and can differ significantly based on local conditions.
Fuel prices are also influenced by the cost of raw materials, which fluctuate daily on global markets. Schelcher criticized Totalenergies for offering capped prices, arguing that the company can afford this due to its control over the entire production chain—from refining to retail. In contrast, Coopérative U only buys and resells fuel. He pointed out that refiners, including Total, have seen substantial profit increases during the current energy crisis, which he described as potentially unfair. Totalenergies reported a net profit of 5.44 billion dollars (4.8 billion euros) in the second quarter of 2023, a 102% increase compared to the same period last year.
Schelcher also highlighted the impact of the ongoing drought on consumer behavior. He noted that people are purchasing fewer non-essential items, such as clothing and home decor, as their purchasing power decreases. While the full effects of the drought have not yet been fully visible in stores, some fruits and vegetables are becoming scarcer. For example, lettuce is arriving in smaller quantities than ordered. The situation could worsen in the coming months, as forage shortages may lead to reduced meat production, potentially causing price increases in the meat sector.
The drought has also disrupted agricultural supply chains, but Schelcher emphasized that there is no immediate risk of long-term food shortages. However, the effects on availability and pricing are expected to become more pronounced over time. As the situation continues to evolve, consumers and businesses alike are adjusting to the changing landscape of energy and food costs.
Fuel Prices Rise Due to Transport Challenges and Market Dynamics
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Original sources:
- 🇫🇷BFMTV



