Business · Energy & Commodities · 9 hrs ago
France to release 10 million oil barrels, with pump price cuts expected in November
France plans to release 10 million barrels from its strategic oil reserves as fuel prices rise during the conflict involving Iran.
On Sunday, 11 October, diesel cost more than €2.30 per litre on average, and one station in Alsace charged more than €3.
The reserves were built up over decades in southwestern France, when oil was cheaper.
Economy Minister Roland Lescure said the fuel is intended for isolated stations and should reach the market from November.
He expects the release to lower pump prices by 12 to 18 cents per litre, with prices falling as soon as the fuel arrives.
The delay means drivers may have to wait several weeks to see the effect.
Lescure said he could not predict how a US-Russia agreement on buying Russian diesel would affect prices, and said France was seeking to extend sanctions on Russia.
France plans to release 10 million barrels from its strategic oil reserves as fuel prices rise.
Economy Minister Roland Lescure said the oil is expected to reach the market from November, after several weeks.
The release is expected to lower pump prices by 12 to 18 cents per litre, according to the article.
Lescure said the barrels would go to isolated petrol stations and be sold below current diesel prices.
He said prices would fall immediately once the barrels arrive.
- Who
- The French government plans to release the oil. Economy Minister Roland Lescure discussed the plan.
- What
- France will release 10 million barrels from its strategic reserves, with lower pump prices expected.
- When
- The barrels are expected to reach the market from November, after several weeks.
- Where
- France; the reserves were accumulated in the southwest.
- Why
- Fuel prices had surged amid the ongoing conflict involving Iran.
This story does not have two clearly opposing sides.
They will be intended for isolated stations.
When they arrive, there will be an immediate drop in prices.
There is no Russian diesel in France and there won't be.
Lescure discussed fuel prices and the planned release of 10 million barrels in an interview on France 2.
The barrels are expected to reach the market and be sold to isolated stations.
- Planned release
- 10 million barrels
- Expected timing
- From November
- Expected pump-price reduction
- 12 to 18 cents per litre
- Fuel price reported
- Diesel exceeded €2.30 per litre on average on 11 October
- Reserve location
- Southwest France
Sources
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