The price of fuel, which broke historic records in France following the crisis in Ukraine, put a strain on the budgets of businesses and households.
COMPANY IN SURVIVAL MODE
“I have 11 employees. Since we are a family business, I consider them as members of my family. This means that I have 11 families to take care of,” said Cyril Piola, the boss of a road transport company established for three generations in the east of France.
Faced with soaring energy prices, the already doubled prices of equipment for trucks as well as the purchase price of trucks, Mr. Piola had to “think regarding how to survive”.
Raising his concerns to Xinhua, he said his 11 trucks consume almost 1,000 liters of diesel a week and that with soaring fuel prices, he had to spend 17,000 euros more to keep the trucks running these past few years. last two months compared to the same period of the previous year.
“Food prices are going up, grain prices are going up, and so the price of biodiesel is going to go up too,” he said, noting that shutting down his business would be a last resort decision in order not to get into debt. to feed his family.
REDESIGNED HOUSEHOLD BUDGET
The prices of electricity, wheat and food increase following the surge in oil and natural gas prices, and push the French to review their budget for their household.
Mesut Mert, who works as a commercial attaché for food company Danone, told Xinhua that small local supermarkets are benefiting from steadily rising fuel prices.
“By going to convenience stores around the neighborhood where the person lives, it’s going to be an advantage for them because they’re going to spend less on fuel,” he said.
In mid-February, a liter of fuel was around 1.70 euros. When the crisis in Ukraine started in the last days of February, the price soared to more than 2 euros per liter in a few days.
Last week, a liter of diesel was sold for an average of 2.141 euros in French service stations, a liter of SP 95-E10 sold for an average of 2.029 euros, according to statistics from the Ministry of Ecological Transition unveiled on Monday.
Jean-Yves Chardon and Hugo Danancher both work on farms. Jean-Yves is a market gardener and Hugo raises cows in the east of France. They both rely heavily on diesel and liquefied natural gas (LNG) to meet electricity demand for their operations.
Rising fuel prices are forcing them to raise selling prices, and delivery costs are also rising.
“We all hope that this increase is one-time,” Chardon told Xinhua. “If it doesn’t last more than three months, we can manage but we don’t know what the future holds for us.”
“With the arrival of spring, we need fuel for production,” Danancher said. “The energy crisis will directly impact the country’s agricultural economy.”
Mr Danancher, who also does direct selling, finds that his customers ‘can no longer afford to buy beef like they used to’ and tend to buy cheaper meat, such as pork or chicken .
Ludovic Cordier uses his personal vehicle to provide a “taxi” service to those who do not have a vehicle. Lately, its clientele is expanding with people who do not want, or cannot afford to fill up their car.
“I refuel twice a week because I’m available 24/7,” he told Xinhua. His vehicle can carry up to six people and he charged one euro per km. Lately he has to charge more to keep his head above water.
Marie-Laure Beyer, who lives near the city of Metz in northeastern France, believes she has found a temporary solution to the fuel problem. She crosses the border to refuel in Luxembourg, 50 km from her home.
“It’s been 15 years since I went back to refuel in Luxembourg. But even with the rise in prices there, it’s still between 20 and 25 euro cents cheaper per liter than in France”, said she said.
AN EFFORT OF 15 CENTIMES PER LITER BY THE STATE
To avoid social unrest, Prime Minister Jean Castex announced this weekend an emergency measure to reduce pump prices by 15 cents per liter, all fuels combined, from April 1 to July 31.
“This means that, for each full 60 liters, you will save 9 euros”, detailed Mr. Castex.
The measure will cost 2 billion euros to public finances. At the same time, the government calls on distributors and oil groups to make “an additional gesture”.