France to allow selling petrol, diesel at loss to curb inflation

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France to allow selling petrol, diesel at loss to curb inflation
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The industry pushes back against changes that seek to control rising costs without subsidising fuel.

French authorities are considering new methods of managing inflation without spending additional public funds.

Such a move would in theory allow greater competition between distributors, who could cut prices below costs and aim to make up lost margin with sales of other products and services. While inflation has eased since the spring, energy costs pushed the rate back up last month. With prices at the pump rising in recent weeks following a resurgence in the cost of oil, the finance ministry already leaned on TotalEnergies SE to cap the cost of gasoline and diesel.

The government’s plan, which will be presented to parliament in October, quickly provoked a pushback from the industry. According to Francis Pousse, whose lobby Mobilians represents 5,800 gas stations in France, it will be impossible for smaller vendors to sell at a loss as they can’t make up the difference with sales of other products.

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