Understanding the Fluctuating Fuel Prices: Trends, Explanations, and Impact on Consumers

2023-12-14 06:00:32

Since the summer, fuel prices have seen several drops. This is a trend that should continue at least until people go on vacation. TF1’s 1 p.m. looked into this question and explained this phenomenon.

Monday, December 11, SP95 was priced at 1.73 euros at service stations and diesel at 1.72 euros on average per liter. The price of diesel increased from 1.87 to 1.75 euros on average, which represents a saving of 12 cents per liter. If we compare the trends of the last three months, the drop is not negligible.

Enough to make the French happy who expressed their joy in front of the TF1 camera. “ Of course this is good news. If it could go down further, it would be even better. », underlines a motorist refueling. On the other hand, other motorists, far from sharing the same optimism, fear a sudden surge in prices. “ It’s going to be on the rise more and more », predicted one of them to TF1. For others, these fluctuations in fuel prices are difficult to understand: “ These ramblings about the price of gasoline are quite inexplicable and mysterious, it’s hard to understand », admits a driver.

How can we explain the current drop in fuel prices?

You should know that pump prices are the result of negotiations that took place a long time ago, when world oil prices were low. “ It is purchased three to four months before it goes on sale. At that time, the price was particularly low because we were in a context of a sharp slowdown in global growth, particularly in China. And therefore inevitably, less demand for oil leads to a drop in the price on the energy markets » explains Anne-Sophie Alsif, partner and chief economist at BDO France, an auditing, consulting and accounting firm.

An economist, who declared on TF1 that this drop could also be explained by “a slowdown in global demand », explains, for his part, that “ when there is less demand, there is less need for oil to produce goods and services. So less demand, lower price “. However, we must expect that gasoline prices will experience another increase, particularly with the approach of the end-of-year holidays, a period which sees increased demand for fuel, warns TF1.

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