France mandates price reduction disclosure

According to a decree dated October 26 and published on Thursday, consumers must be clearly informed at gas stations about price reductions. The information must be visible, readable, and easily accessible, with the amount of the reduction specified in detail.

Legal requirement for price transparency

The official text states that the price reduction must be "at least equal to the amount before taxes of the benefit passed on, adjusted to the volume of sales to which it is attributed, plus the taxes applicable to it." This ensures transparency and fairness in how price reductions are communicated to consumers.

Government action to lower fuel prices

France had announced on October 12 that it would make available to distributors ten million barrels of diesel from its strategic reserves. This was done in proportion to their 2025 market share, with the goal of reducing the price per liter at the pump by 12 to 18 cents.

Response from major energy company

Shortly after the announcement, TotalEnergies, a major oil and gas company, committed to reducing the price of diesel per liter for individuals by 8 to 12 cents. The company also pledged to lower the price of non-road diesel (GNR) by 20 cents.

Focus on non-road diesel usage

The government's measure applies specifically to non-road diesel (GNR), used by farmers, fishermen, or the construction industry, but not to gasoline. The operation is expected to last until the end of January.

Strategic reserves sold at lower prices

The operation involves selling strategic reserves, purchased before the war in the Middle East, to distributors at 0.28 euros per liter. This is significantly less than the current market price, which was about 1.10 euros per liter in mid-October.

Scale of France's fuel reserves

France's strategic reserves amount to approximately 100 million barrels of hydrocarbons, about half of which is diesel. These reserves are kept for extreme situations and are not typically used under normal conditions.

High diesel prices affecting demand

French diesel consumption over three months was 54 million barrels, according to Matignon in mid-October. However, the current very high diesel prices are causing a decline in demand, with some industry leaders describing the fuel consumption in October as a "real collapse."

Current fuel prices in France

On Thursday, the average price of diesel was approximately 2.38 euros per liter, according to an AFP calculation based on data from more than 8,800 stations. The average price of a liter of SP95-E10 was 2.11 euros on Thursday.