Soaring gasoline prices at service stations created panic among the French, who rush at the pump. However, according to some specialists, we should have good news soon. The Objeko team gives you all the details in this article.
Soaring oil prices: the war in Ukraine in the background
French motorists are in shock. The price of petrol at service stations has exceeded €2 per litre, unheard of. This price spike is of great concern to people dependent on their vehicles. Oil is mocked as becoming a luxury product.
Of course, this exorbitant price did not happen by chance. It is intimately linked to the theater of war taking place right now in Ukraine. On February 24, Vladimir Putin shocked the international community by ordering the invasion of his border country. The war is still raging right now, and the Ukrainian forces are putting up incredible resistance to the Russian war machine.
Many countries in the free world, whether they are part of l’OTAN or not, have severely sanctioned Russia. The goal is to sink the country economically to force the troops to withdraw from Ukraine. Among its measures, many countries decided to stop buying oil from Russia. However, this is one of the main importers of raw materials in Europe, and in particular in France. As a result, the price of a barrel of crude oil exceeded $130. The price of gasoline and diesel has soared, reaching the staggering sums that we now know.
A drop in prices at the planned gas station?
The French are rushing to the pump in the face of this surge in oil prices. Indeed, they are afraid that it will continue to climb. Some petrol stations have once more of stock bought before the huge price hike, but those are soon over. However, according to Michel-Edouard Leclerc, boss of the E.Leclerc centers, we must not give in to panic. He spoke at the microphone of BFMTV on March 9: “ By the end of the week the [prix des] stocks must fall once more. First because crude oil prices are collapsing there and then because it has taken a big discount also because the euro is rising once morest the dollar. I think we will have a drop of 14-15 cents per liter from Friday.”.
If the surge in oil prices is regarding to end, according to experts, it is thanks to the decision of the European Union not to implement an embargo on Russian oil. In addition, the precious black gold is also subject to the laws of the market, and its excesses. Michel-Edouard Leclerc continues: “I find that there is no rationality in this market. There is stock, there is no less oil today, even the Russians still sell diesel. There was no objective reason for it to flare up, the markets are speculating. What we might do was sell at cost, but we got a 20-cent increase in one week. the price average must be between 2.15 and 2.22 euros per litre.”
With the financial markets reassured by Europe’s decisions, the surge in oil prices should therefore run out of steam quickly.
The government in the face of soaring prices
This is not the first time that France has experienced a surge in oil prices in recent years. Remember, it was even one of the causes of the insurrection of the yellow vests.
During the health crisis linked to the COVID-19 pandemic, the price of gasoline and gas increased enormously. The government has come to the aid of citizens thanks to the energy voucher, as well as the prime inflation. This was a real boost for millions of households who had to tighten their belts in this very tense period.
The surge in prices linked to the invasion of Ukraine by Russia is once once more beating the cards. The previous paid premiums, which were already considered as modestare clearly not sufficient to absorb this new price increase.
The French government would thus already be working on new emergency measures so that the impact is lessened on the most modest French people. However, we must not forget the presidential election which is fast approaching. According to the new candidate in power, these measures might very well evolve in the coming months. The Objeko editorial team keeps an eye out for news regarding the price of gasoline. And, in the meantime, favor cycling and public transport if you can!