Categories: Business

Good news for the French, prices continue to fall

Fuel prices in France continue to fall for the second week in a row. Although the price of a barrel of oil has increased, this increase has not been felt by French motorists.

Unveiled on January 15, new data from the Ministry of Environmental Transition indicate a drop in fuel prices in France. In fact, the price of Super SP95-E10 fell by 0.7 cents, settling at an average of 1.7645 euros for the week from January 8 to 12. For its part, diesel is also affected by this drop in price, reaching 1.7227 euros with a decrease of 0.5 cents. A rather weak decline that reflects market volatility, particularly due to conditions in the Middle East and the Red Sea.

An alarming situation in the Red Sea

Fuel prices in France are directly linked to the price of oil. Last week, the price of a barrel increased by 1.4 dollars to 78.1 dollars. Rise due to tension in the Red Sea. Indeed, attacks by Houthi rebels on ships are forcing many shipping companies and some liquefied natural gas (LNG) carriers to avoid the main global east-west trade route. However, as Frederick Pauss explained in a newspaper interview Free Maine, president of Mobilians’ fuel distributor arm, suggests that the price of a barrel of oil remains at an average level. Despite this stability in barrel prices, fuel prices in France should not return to the levels of ten years ago, especially due to the 15 percent increase in fuel tax, Frédéric Paus has made clear.

Will this drop in fuel prices continue?

Due to the alarming situation in the Red Sea, it is difficult to determine whether this decline in fuel prices will continue. Barrel prices have increased in recent days, especially compared to last week. Brent was trading at USD 78.32 on Saturday January 13. For its part, American West Texas Intermediate crude was sold at 73.64 USD. However, the increase is not significant. Prices are in the low range earlier this year. Therefore, the current increase will not have a major impact on fuel prices in France, which have stabilized relatively after a second decline after a long period of increases.


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