Lowest fuel prices in the past four years reported
In August 2021, motorists in France experienced a notable decrease in fuel prices, with savings ranging between 2.50 and 5.50 euros for a full tank of diesel or unleaded 95. This drop can be attributed to a combination of government interventions and favourable market conditions.
Retiree Robert Deville, who closely monitors his expenses, is among those benefiting from the price drop. He uses an app to find the cheapest fuel station and the best conditions, making his trips more affordable.
Nicolas Morbois, a motorist traveling to the Basque Country, also welcomes the decrease. He notes that fuel prices are still cheaper than they were a few weeks ago, providing relief for his travel expenses.
One of the main reasons for these drops is the 15 cents per litre discount on fuel, which was introduced by the government effective from April 1, 2021. Additionally, the government allocated around €400 million in aid to support the transportation sector, further alleviating fuel price pressures.
Global market dynamics also played a significant role. The favourable exchange rate for the euro against the dollar and increased oil production by exporting countries contributed to the drop in fuel prices. After spikes related to earlier pandemic recoveries and geopolitical tensions, international crude oil prices stabilized or fell during mid-2021, impacting retail fuel costs in France.
Moreover, seasonal and market factors influenced the fuel price decrease. Fuel prices often show seasonal variation, influenced by demand changes in summer months and supply conditions.
Professor Philippe Chalmin of Paris-Dauphine University predicts that unleaded 95 could drop to around 1.50 euros before the end of the summer. He believes that fuel prices should continue to drop in August, providing further relief for motorists.
In conclusion, the fuel price drop in August 2021 can be attributed primarily to government subsidies and discounts, alongside global oil price moderation and seasonal demand factors. This decrease is beneficial for motorists, making their journeys more affordable during these challenging times.
The drop in fuel prices in August 2021 also positively impacted the automotive industry's personal-finance sector, as motorists like Robert Deville and Nicolas Morbois were able to save money on fuel, thanks to the lower prices. With the government introducing a 15 cents per litre discount on fuel and allocating €400 million in aid to support the transportation sector, the industry experienced some financial relief. Furthermore, analysts like Professor Philippe Chalmin from Paris-Dauphine University anticipate that the benefits to motorists from lower fuel prices will continue, potentially extending into other areas of the economy such as sports or finance, as individuals have more disposable income.
