If you drive every day, you are probably familiar with it. Indeed, fuel prices have risen again. An increase that is not very welcome given that many families were planning to go on summer vacation in the coming days. Thus, it could be that households having too tight a budget have no choice but to cancel their summer holidays. We take stock.
Fuel is expensive
France is experiencing a period of high inflation. Since beginning of the conflict in the East, the prices of all products combined have increased. Fuels were of course the first victims. This can only have negative repercussions on the purchasing power of the most modest French people.
If we talk about diesel, it is now sold at 2.13 euros per litre. No, you are not dreaming: there is a clear increase of 34 cents in the space of just one month. In the case of gasoline, service stations display 2.10 euros per litre. If that sounds low compared to diesel, remember there’s still the 18 cents per liter rebate put in place by the government.
— RMC (@RMCInfo) May 10, 2022
What will the state do about this? The most plausible scenario is the extension of this measure until the end of the year when it was supposed to end on July 31, 2022. As a reminder, the Minister of the Economy, Bruno Le Maire, was in favor this decision as long as the prices at the pump go up.
Will the roads be blocked?
With the explosion in the cost of living, the increase in fuel prices is bad news for millions of French people. Everyone is concerned, because it does not only concern summer holidays, but also every trip in everyday life.
Still, the carriers are not happy either more of the situation. Indeed, it should be remembered that these circulate in all French territories and sometimes in other countries. Hence their desire to challenge the rise in fuel prices. For this, they claim state aid.
Last week, fuel prices increased again:
➡ €1.4180 for diesel (+ 1.21 cents)
➡ €1.5005 per SP95 (+0.96 cents)
➡ €1.4809 for the SP95-E10 (+0.94 cents)
➡ €1.5653 per SP98 (+0.99 cents)https://t.co/6qGPEstizg pic.twitter.com/J7V27LjMo2
– The Parisian (@le_Parisian) April 30, 2018
Fearing that their voice will not be heard by those above, they plan to block the roads. Questioned by journalists from Transport Info, the director of a transport company threatened the leaders:
” We want pay our employees properly and not fatten the tankers. […] We will block the roads. […] The French will thank us”
This does not look good for those planning to go on summer vacation this season.
“We are going to block the big operators”
That’s not all, because a strike is already being prepared. Indeed, on June 3, the transport unions announced the date of June 27 to go on strike. It should be noted, however, that this strike has nothing to do with soaring fuel prices.
In reality, the unions are asking for a salary increase for its employees. In any case, their demonstration is accompanied by a blocking of certain industrial sites. What will it give? The future will show us. In a speech, Thierry Douine, president of the CFTC-Transports was categorical:
“We are going to block the big operators: transport of goods, passengers, logistics, transport of funds”
– Nice-Matin (@Nice_Matin) July 16, 2019
Inflation: the worst is yet to come?
It has not escaped your notice that inflation is raging in France. Imagine that thanks to the measures taken by the government, France is one of the countries which suffer the least from the explosion in the cost of living. And it’s not just gasoline and diesel that are victims of inflation. Food products are also the most affected with a 5.4% increase in the consumption index according to INSEE in June.
So much so that certain products such as sunflower oil or Again mustard have completely deserted supermarket shelves. For good reason, raw materials are lacking. Analysts are unanimous on one thing: the worst is yet to come. This is what the credit insurer Allianz Trade asserts in a study on the impact of rising food prices:
“The worst is yet to come for European households”