Oil prices have returned to their upward trend since late last week. Black gold is above $80 in international markets. Fuel prices in France are also on a similar curve. They rose again this Wednesday, January 31. Will this situation force the government to reconsider its position on fuel allowance?
This Wednesday, oil prices are still in their rising range. Trading on Brent 81.59 USD, when selling American West Texas Intermediate crude is 76.85 US Dollars. Hence oil prices are maintaining their high prices in the context of tensions in the Red Sea.
Fuel prices are increasing continuously
As for fuel prices in France, they are also going up this Wednesday, January 31. According to the website carbu.com, the price of diesel (B7) has reached 1.79 euros per liter, which is an increase of 1.40% compared to last week. Unleaded 98 (E5), for its part, registered an increase of 0.50% to 1.89 euros per liter, according to the same source. For LPG, it is displayed at 0.996 euros. It is the only fuel to see a decline of 0.5% compared to last week. Super 98 (E10), for its part, remained stable at 1.84 euros per liter.
The increase in fuel prices has been explained by the increase in oil prices in the face of continued instability in the Red Sea. Indeed, in addition to the paranoia the Houthi rebels have sown in this global trade route, leading to additional costs for ships forced to change their routes, the attack has revived fears of supply disruptions from the Middle East. Due to this tension was seen in the oil markets.
Hence fuel prices are expected to increase in the coming days. Additionally, some forecasters expect oil prices to rise in 2024. However, due to the volatility of markets, it is difficult to control external factors, especially red sea conditions.
Will fuel be checked to ease motorists?
Faced with this increase in fuel prices along with increases in electricity and gas prices, the most vulnerable French will still be in trouble, hence questions about putting compensation back on the agenda. The aid announced by the government in November 2023 will not be activated automatically for the start of the current year. Bruno Le Maire explained that this system only pertains to moments of crisis. ” It is a safety device when fuel prices explode “, he justified.
The activation of the fuel allowance of up to 100 euros, initially planned for January 1, 2024, will only happen in the event of a price increase. ” If tomorrow, which I certainly don’t want, you have the crisis in the Middle East worsen, oil prices explode and, as a result, you have pump prices close to 2 euros, I will trigger the worker fuel allowance system. », explained Bruno Le Maire in December 2023.
However, the situation has changed. In terms of unrest on a social level, the French will have to deal with several additions at the same time. In this regard, the fuel allowance is one of the objectives of providing relief to motorists against prices approaching the threshold set by the Minister of Economy.
