French Government Investigates Fuel Margin Increases

A government working document reveals that fuel margins at major stations like Esso, Avia, and Carrefour have increased significantly during the Middle East conflict. The French government has opted to refer the regulation of refinery margins to the European Commission rather than taking direct action. This decision follows warnings from Total CEO Patrick Pouyané regarding margin levels. The state is attempting to avoid a direct confrontation with Total, which is a major component of the French economy. The European Commission has been tasked with examining margins for all refiners within the European market, including Total. The European Commission has approved a 35-centime per liter subsidy for diesel fuel for the month of May. However, this measure is considered insufficient by businesses, especially as the price of Brent crude oil has surpassed $110 per barrel, indicating future price increases for diesel. Businesses require more economic viability to remain operational. Fuel distributors were received at the Ministry of Economy in Bercy today to discuss profit margins and price transparency at the pump. Following reports from Mediapart, the government intends to increase pressure on distributors. The administration plans to publish gross margin indicators calculated by the DGCCRF, the General Directorate for Competition Policy, Consumer Affairs and Fraud Control. The source cited the Direction Générale de la Concurrence, de la Consommation et de la Répression des Fraudes as the provider of the indicators.