French Fuel Prices Continue to Fall: Updates on the Market and Future Projections

2024-01-16 12:31:42

The fall in fuel prices continues in France, for the second week in a row. Despite an increase in the price of a barrel of oil, this increase is not felt by French motorists.

Unveiled on January 15, new data from the Ministry of Ecological Transition indicates a decrease in fuel prices in France. In fact, the price of the Super SP95-E10 fell by 0.7 cents, settling at 1.7645 euros on average for the week from January 8 to 12. For its part, diesel is also affected by this drop in prices with a drop of 0.5 cents, reaching 1.7227 euros. Rather weak declines which reflect the instability of the market, in particular because of the situation in the Middle East and the Red Sea.

A worrying 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, reaching 78.1 dollars. An increase caused by tensions in the Red Sea. Indeed, attacks by Houthi rebels on ships are pushing many shipping companies and some liquefied natural gas (LNG) carriers to avoid the main global east-west trade route. However, as Frédéric Pousse explains in an interview with the newspaper Free Maine, the president of the fuel distributors branch of Mobilians indicates 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, specifies Frédéric Pousse, in particular because of a 15 cent increase in fuel taxation.

Will this drop in fuel prices continue?

Due to the worrying situation in the Red Sea, it is difficult to determine whether this drop in fuel prices will continue. Especially since the price of a barrel has increased in recent days compared to last week. On Saturday January 13, Brent was trading at USD 78.32. For its part, American West Texas Intermediate crude was sold at 73.64 USD. However, the increase is not significant. Prices remain in the low range at the start of this year. Therefore, the current increases will not have a big impact on fuel prices in France, which have relatively stabilized following a long period of increase followed by another of decline.

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