Exploring the Impact of Government Decisions on Fuel Distributors: Insights from President of E. Leclerc

2023-09-24 09:55:38

Explaining that selling at a loss is “inconceivable” for fuel distributors like him, the president of the strategic committee of the centers E. Leclerc calls on the State to focus the effort on oil tankers.

Saying “saw» by the announcement of Prime Minister Elisabeth Borne, last weekend, to authorize fuel distributors to sell at a loss, Michel-Edouard Leclerc has not hidden his dissatisfaction for a week. In an interview given to JDD this Sunday, September 24, he even claimed to have called the head of government to tell her that “this decision was an aberration”, and urges the State to act. But how ?

According to him, the government “has two ways to intervene” : either “lowering taxes“, which represent approximately half the price of a liter of fuel at the pump, i.e. in “blocking the refinery exit price» which he describes as “decisive in the resale price». «If we want retail pumpers not to exceed a resale price higher than 2 euros, the effort must be made by the tankers“, he explains, adding that it would simply be enough “to impose it on refinery operators».

Rising prices, a precursor to revolts?

A ready solution found by the one who ensures that fuel distributors absolutely “have nonot the capacity» to sell at a loss. “It is written everywhere that fuel is a loss leader. But for many, at Leclerc as at Intermarché, fuel represents 20 to 25% of turnover.», recalls Charles-Edouard Leclerc, thus judging “inconceivable» to sell at a loss «for balancing the accounts“. Before stating: “Selling at cost is already a big sacrifice».

For the businessman, national cohesion is at stake. “Should we remember that the “yellow vest” movement» and, in Brittany, that of the Bonnets Rouges, started with a fuel price considered exaggerated by the transporters?», he asks once more. Evoking what is a “haunting» in his eyes, he argues that in historical facts, “rising prices have always been a precursor to popular revolts». «I also have this reminiscence of Raymond Barre’s economics classes which reminded us that inflation always precedes recession.», he concludes.

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