2023-09-18 19:01:19
Faced with persistent inflation, the government pulled out the card of selling fuel at a loss from “the beginning of December”, but had to commit on Monday to granting “compensation” to independent service stations which were worried. The sale at a loss should last “six months” and “it will be effective, I hope on December 1 since the text of the law (on commercial negotiations between producers and distributors, editor’s note) will be examined in the Assembly at the beginning of October”, said said Monday the Minister of the Economy Bruno Le Maire on France 2. Elisabeth Borne announced the measure on Saturday, lifting an old taboo, because it has been prohibited in France since 1963. The bill will be presented to the Council of Ministers on September 27, Bercy confirmed to AFP.
The possible temporary legalization of this sale at a loss makes small service stations fear too strong competition from large stores. This provision is “economically not viable for independent distributors, who will not be able to compensate for losses in this activity with other revenues – particularly food products”, the professional union Mobilians, representing 5,800 stations, said in a press release on Monday. service excluding supermarkets. These independents, who will not be able to implement sales at a loss, are afraid not only of seeing their customers stock up in supermarkets, but also of suffering “automatically a drop in ancillary, economically remunerative activities (washing, shopping, etc.) etc.)”, explains Mobilians, denouncing a “real imbalance” between the actors with “devastating effects”.
“Essential” compensation
Faced with this situation, the Minister of the Economy Bruno Le Maire, the Minister of Energy Transition Agnès Pannier-Runacher and the Minister Delegate in charge of SMEs, Commerce and Crafts Olivia Grégoire proposed an emergency meeting in Bercy on Monday in which Mobilians participated. At its conclusion, the ministers committed to putting in place a “support plan for traditional service stations”, which will include in particular “the establishment of compensation measures”, revealed the union in its press release, “welcoming ” of their “listening”. These measures will consist of a compensation fund “in the very short term, intended for independent service stations, in order to support the sector during the six months of authorization of resale at a loss”, specified Mobilians.
In the long term, the government will also take “provisions in favor of the transformation of these companies”, via the creation of a support fund and the sustainability of another, added the union, welcoming three “commitments essential to survival and transformation” of the sector.
“Very skeptical”
This summer, fuel prices started to rise again, approaching two euros per liter, in the wake of the oil boom. And the trend is likely to be confirmed, with production reductions decided by producing countries. Many distributors have already sold fuel at cost price in recent months, which has reduced the price by just a few cents. Most have committed to continuing until the end of the year. However, the solution mentioned by the government of selling at a loss to limit the cost on the French wallets is struggling to convince opposition deputies.
“I am very skeptical,” adds Patrice Geoffron, professor of economics at Paris Dauphine. With selling at a loss, the government is taking “a six-month bet, but after?” he asks, noting that “today there is not much in the toolbox of the public policy”. The Asteres firm underlines in a note the risk of an increase in the prices of other products to “compensate”.
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