According to information from two fuel dealers and the French petroleum industry association UFIP-EM, fuel dealers will soon receive this batch of reserve diesel to calm fuel prices, and there is no need to make up and return them later. French Prime Minister Sébastien Le Corny announced on October 7 that a strategic reserve of 10 million barrels of diesel will be launched from November 1. Dealers can purchase this batch of diesel according to the average cost at the time of storage. This price is far below the current market price and is expected to reduce the retail price of gas stations by 12 to 18 euro cents per liter. The relevant legal basis was set out in the French government gazette last Saturday. The original obligation to replenish stocks has obvious drawbacks: if the geographical situation continues to be tense and market oil prices remain high, dealers will only be able to buy back and return reserves at a higher price in the future, which will eventually cause a retaliatory rebound in oil prices. In addition to this, diesel consumption in France is declining year by year: people are cutting back on spending while switching more to trams or gasoline cars. This trend has further accelerated this year, and in the eyes of the government and industry, the need to replenish reserves has declined. Philippe Kasbas, president of the French Petroleum Industry Association UFIP-EM, said: “We are predicting what will happen in the next two to three years.”

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