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FUEL

French supermarkets announce plan to sell (slightly) cheaper fuel

Two of France's primary fuel distributors have announced plans to sell at cost-price, starting on Friday. But will drivers save much money when filling up their tank?

Published: 29 September 2023 09:47 CEST
French supermarkets announce plan to sell (slightly) cheaper fuel
A logo of the French retail giant Carrefour surpermarket. (Photo by LOIC VENANCE / AFP)

The fuel stations operated by Leclerc and Carrefour in France began offering fuel at cost-price on Friday after calls from the government to aid consumers with the rising price of petrol and diesel.

The operation will remain in place until the end of 2023, BFMTV reported.

As for Leclerc, the company said in an announcement on social media that only the 696 service stations located at its supermarkets will be concerned, meaning it will not include motorway stations. 

Unlike previous similar operations by Leclerc, concerned stations will offer fuel at cost-price every day of the week, including weekends and holidays. 

The company added that the initiative was “designed to last”, but it would “have to be re-evaluated or adapted each month to take account of supply conditions and the expected involvement of oil companies”.

As for Carrefour, the company simply published a tweet announcing a “large-scale operation” to sell fuel at cost-price starting Friday.

Carrefour also noted that fuel at cost-price would be available specifically at stations at supermarkets.

How much will the operation decrease costs for consumers?

A representative from France’s union for petrol industries (UFIP) estimated to BFMTV that retailers only had margins of around €0.01 when it comes to the sale price of fuel. 

The president of Leclerc, Michel-Edouard Leclerc, told France Info on Wednesday that their margins were around “two to three percent, meaning about €0.02 to €0.06 cents per litre.”

So for a full tank of petrol at Leclerc, this might save the driver between just €1 and €2, according to estimations by France Info.

What about selling at a loss?

Despite requests by the French government, both Leclerc and Carrefour remained opposed to selling fuel at a loss. 

In an attempt to respond to higher costs at the pump, France’s prime minister had announced that the government would pass legislation in order to allow fuel providers to sell at a loss, which would normally be outlawed in France due to protections for small and independent businesses.

However, fuel distributors have so far refused this government plan. Afterwards, French President Emmanuel Macron told TF1 in a televised interview that he would meet with fuel distributors to push them to sell at cost-price.

The president also said he would request that the government include a new scheme to help low-income households who rely on their vehicles to get to work in the upcoming 2024 budget. 

READ MORE: Who could benefit from France’s planned new fuel subsidy?

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DRIVING

EU countries to extend range of offences foreign drivers can be fined for

The EU has agreed to extend the number of driving offences for which motorists from other member states can be fined for and to make it easier for authorities to chase up the fines and make foreign drivers pay.

Published: 13 May 2024 17:28 CEST
EU countries to extend range of offences foreign drivers can be fined for

In the last voting session of this term, in April, the European Parliament passed new rules to ensure drivers who breach local traffic rules in another EU member state are found and fined.

The cross-border enforcement (CBE) directive was first adopted in 2015 after it was found that non-resident drivers were more likely to commit speeding offences. The European Commission estimated that in 2008, foreign drivers accounted for about 5 percent of road traffic in the EU but committed around 15 percent of speeding offences.

The directive partially improved the situation, but according to the Commission 40 percent of traffic violations committed in other EU countries are still unpunished “because the offender is not identified or because the fine is not enforced”.

In March 2023, the Commission therefore proposed updating existing measures.

New rules extend the type of offences that will trigger assistance from another member state and seek to improve collaboration among national authorities to identify and fine offenders.

The European Parliament and Council agreed in March on the final text of the directive, which is now being formally approved by the two institutions.

André Sobczak, Secretary-General at Eurocities, a group representing European cities in Brussels, said: “While the final outcome of the discussions is not ideal, we are pleased that EU policymakers have at least put the issue of the enforcement of local traffic rules on foreign vehicles on the table. As we approach an election year, I believe such a practical example can demonstrate why a European approach is necessary to address local issues.”

Which traffic offences are covered?

The previous directive covered eight driving misconducts that would require member states to cooperate: speeding, not wearing seat belts, failing to stop at a red traffic light, drink-driving, driving under the effect of drugs, not wearing a helmet (motorcycles / scooters), using a forbidden lane and using a mobile phone or other communication devices while driving.

The Commission proposed to add to the list not keeping a safe distance from the vehicle in front, dangerous overtaking, dangerous parking, crossing one or more solid white lines, driving the wrong way down a one way street, not respecting the rules on “emergency corridors” (a clear lane intended for priority vehicles), and using an overloaded vehicle.

The Parliament and Council agreed to these and added more offences: not giving way to emergency service vehicles, not respecting access restrictions or rules at a rail crossings, as well as hit-and-run offences.

Despite calls from European cities, the new directive does not cover offences related to foreign drivers avoiding congestion charges or low emission zones. In such cases, information about vehicle registration can only be shared among countries with bilateral agreements.

Karen Vancluysen, Secretary General at POLIS, a network of cities and regions working on urban transport, called on the next European Commission to take other local traffic offences, such as breaches of low emission zones, “fully at heart”.

Collaboration among national authorities

For the traffic violations covered by the directive, EU countries have to help each other to find the liable driver. The new directive further clarifies how.

Member states will have to use the European vehicle and driving licence information system (Eucaris) to get the data of the offender.

National authorities will have 11 months from the date of the violation to issue the fine to a vehicle from another EU member state. However, they will not have to resort to agencies or private entities to collect the fine. This was requested by the European Parliament to avoid scams or leaks of personal data.

Authorities in the country of the offender will have to reply to requests from another EU member state within two months.

When the amount of the fine is more than €70, and all options to have it paid have been exhausted, the member state where the violation occurred can ask the country of the offender to take over the collection.

The person concerned will be able to request follow-up documents in a different official EU language.

When will the new rules will be enforced?

Now that the EU Parliament has passed the law, the EU Council has to do the same, although there is no date set for when that will happen. Once the directive is adopted, EU countries will have 30 months to prepare for implementation.

Last year the Commission also proposed a new directive on driving licenses, but negotiations on the final text of this file will only take place after the European elections.

This article has been produced in collaboration with Europe Street news.

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