Why fuel prices have fallen more than 25 cents since the start of summer

Small sigh of relief at the pump. Last week, fuel prices fell again at service stations according to official figures from the Ministry of Ecological Transition. The lead-free 95-E10 even flirted with the €1.80 mark (on average) on Friday, July 29, a first since early May.

Minus 25 cents per liter of diesel

In the last six weeks, fuel prices have only gone down. Between June 17, when diesel marked 2.1345 euros per liter on average, just below its historical maximum of March 11, and last Friday, the price of a liter fell by 25.63 cents.

The drop is even more impressive for the SP95-E10: -27.84 cents less in six weeks. With a full tank of 45 liters, a motorist saw his bill drop by 12.52 euros.

Barrel prices hover around $100

It is the fall in the price of oil that largely explains this fall. During the same period, the price of Brent lost almost $18. While in mid-June the barrel fluctuated between 120/125 dollars, on July 29 it stood at 108.3 dollars. For several weeks, the barrel has been hovering around the symbolic mark of 100 dollars, in a market that remains especially volatile.

This Tuesday, for example, while tensions around Taiwan intensify and pending an OPEC+ meeting on Wednesday, Brent lost 0.76% to $99.28 while WTI fell 0.59% , down to $93.34.

The 30-cent discount takes effect in September

It is impossible to say whether this more favorable situation for motorists will last. The euro-dollar exchange rate is notably less favorable for French motorists. In fact, oil products are exchanged in dollars and, naturally, a strong euro benefits Europeans. That’s how it was ten years ago, but today it’s not. In such an uncertain environment, buyers look for signs of a bullish or bearish trend.

Finally, remember that the various fuel subsidies have nothing to do with the drop observed in recent weeks. The reduction of 18 cents introduced by the government is effective from April 1. And the aid of 30 cents will not take effect before the beginning of September. As for the specific aid from oil companies such as TotalEnergies, they only marginally move the averages recorded weekly by the Ministry of Ecological Transition.