Distributors authorized to sell gasoline “at a loss” for “a few months”

Distributors will be able to sell gasoline “at a loss» for a few months in order to “lower prices“. jittawit.21 / stock.adobe.com

“With this unprecedented measure, we will have tangible results for the French, without subsidizing fuel,” assured the Prime Minister in a long interview with Parisian.

Prime Minister Elisabeth Borne announced that distributors will be able to sell gasoline “at a loss» for a few months to allow them to “lower prices further», in an interview posted online Saturday on the website of the Parisian . “With this unprecedented measure, we will have tangible results for the French, without subsidizing fuel.», she assured, after recalling that selling at a loss had been prohibited by law since 1963.

The head of government did not accept the opposition’s proposals which call for either a rebate, like a year ago, or a reduction in gasoline taxation to deal with the surge in fuel prices which have reached the mark of two euros per liter. “Everyone takes their part“, she affirmed, assuring that it “is normal to involve large industrialists”, while recalling that “the responsibility of the State is also to reduce its deficit and its debt“.

Professionals amazed

This announcement aroused the astonishment of Francis Pousse, president of the professional union Mobilians which represents 5,800 traditional service stations (excluding supermarkets) including 3,400 stations displaying the TotalEnergies brand. While TotalEnergies has already capped the price of fuel at 1.99 euros per liter in most of its stations, Francis Pousse sees this new measure as a response to supermarkets, allowing them to “to fight» in this ultra-competitive market, while the market price «will soon exceed 1.99 euros“.

We gas station attendants, it is out of the question that we sell at a loss“, he told AFP, before adding: “My members live on 40, 50% or even more from the sale of fuel, so if they sell at a loss, I give them three months“. In an already very tense market, he recalls that the net margin of traditional stations is “1 to 2 cents» (per liter) in normal times.

Francis Pousse also says “skeptical» on the effect of this measure on purchasing power, because if the prices of supermarket suppliers continue to increase, they will not be able to “can’t afford to lose 15 cents on every liter of gasoline“. He is waiting “rapid and firm commitments» of the government to protect its members from this “market deregulation“.

Possible use of 49.3 in future laws

Asked about the comments of the national secretary of the PCF, Fabien Roussel, who this week called on the French “to invade gas stations and supermarkets», Elisabeth Borne said to herself “surprised» by statements which were not “in his habits“. “I called him to tell him that it was a very bad message and that political leaders had to be very careful with their words in a context where there may be anger among some of our fellow citizens.“, she said.

On the question of purchasing power, the head of government rejected the RN’s proposal to eliminate VAT on food products, calling on the far-right party to read “studies which have proven that going from 5.5% to 0% is often not reflected in prices“.

Asked about her desire to use 49.3 during the next legislative deadlines, Elisabeth Borne remains cautious. For the immigration bill, “Gérald Darmanin’s mission is to find an agreement, that’s the path we’re looking for today and I don’t see why that wouldn’t be possible.», she evades. For the public finance programming law, the Prime Minister is clearer: “Our discussions with the various parliamentary groups show that the oppositions will vote against on principle. (…) So, yes, we will use the tools provided for by the Constitution“. And to add: “My responsibility is to ensure that these texts will be adopted“.

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