VSdamn! While major retailers complain about not being able to lower fuel prices due to the legislation, the government has decided to take the sector at its word. Prime Minister Elizabeth Bourne announced on Saturday 16 September. “exceptionally only” Brands will be able to sell at a loss in their gas stations.
After fuel checks, state-subsidized pump discounts, bans on TotalEnergies dropping the price of a liter to €2 by the end of the year, the government is drawing up a new card to fight the hike. in oil prices. Beyond the doubts about the effectiveness of the measure and the origin of its risks, the decision only reflects the government’s difficulty in supporting purchasing power and the need to accelerate the climate transition.
By removing the ban on selling at a loss, the government is amending the 1963 law. The purpose of this text is to protect the most vulnerable traders from dumping, which may be exploited by financially better-armed competitors. Repeal of the law, even temporarily, sends the wrong signal to a sector accused of destroying small businesses, criticized for a tendency to abuse its purchasing power with some suppliers, and which sometimes engages in dubious advertising operations. . In 2018, the brand was criticized for selling at a loss on the spread, which led to stampedes and fights in stores. It is not impossible to witness such scenes of chaos in hypermarket service stations if certain brands are involved in poorly controlled marketing stunts.
Return of the law of the jungle
Another collateral damage: the temptation for distributors to match shelf prices to recoup what they lose on fuel, which is a loss leader. If this authorization to resell at a loss sustains food inflation, the French will gain nothing. Finally, this return to the law of the jungle will prove fatal for a certain number of independent pump attendants who will not be able to continue.
The government is trying to improvise in response to the situation, which depends on the goodwill of oil exporting countries to activate the production valves. He takes the risk of undermining his communication of the necessary energy transition by encouraging people to consume as much fuel as ever, when, on the contrary, we should try without it. Of course, it is necessary to take into account the difficulties of less affluent people in traveling to work. But, once again, the government chooses a measure that will benefit everyone regardless of global warming.
Paralyzed by the memory of the Yellow Vest movement, which was torn between conflicting orders, the government moves by sight. In his defence, oppositions don’t shine with a sense of responsibility and the French don’t show much consistency. The latter complain about the price of petrol, but oppose the new speed limit measures, which will at least help them make valuable savings.
Source: Le Monde
James Bilodeau is a political junkie and a writer at Run Down Bulletin. With a deep understanding of the inner workings of government, he provides comprehensive coverage of the latest political developments, both at home and abroad.
