Diesel: A decree published with a view to releasing strategic stocks and reducing the price at the pump

It was eagerly awaited. This Saturday, a decree setting the economic conditions for the release of strategic diesel stocks announced at the beginning of October by the Prime Minister, Sébastien Lecornu, was published in the Official Journal and provides for an impact on consumers from November 1.

Concretely, the text authorizes the sale of strategic stocks for a maximum volume of 1.6 million m3, or approximately 10 million barrels, until January 31, according to distribution by distributors and at a price which will be set by decree. The government thus hopes to reduce the price of diesel by 12 to 18 cents per liter, which has fluctuated between 2.3 and 2.4 euros on average since the beginning of October, according to government figures.

Obligation for distributors to pass on the price reduction

The decree provides for the obligation for distributors to pass on the price reduction in full to consumers and to inform them before the sale. “This repercussion can also take place in advance from November 1, 2026,” specifies the decree.

The provision of stocks from the Société Anonyme de Gestion des Stocks de Sécurité (Sagess) is usually carried out in the form of a loan, with restitution within one month. But a sale at the weighted average acquisition cost was favored in this case. The decree also provides for regular transmission to the authorities of sales reports and the repercussions of the decline by distributors, for control purposes.

Extension of the help desk for the purchase of RNG

A separate decree, also published this Saturday, also extends the aid window for the purchase of non-road diesel (GNR) for agricultural work until December, up to 15 cents per liter.

Another decree must reopen this window to latecomers for the months of April to June, farmers having not consumed the entire envelope, which amounts to more than 50 million euros per month. On Tuesday, the Ministry of Agriculture indicated that nearly 74 million euros had been paid to more than 184,000 farmers under the windows from April to August.

After the announcement of the release of strategic stocks by the Prime Minister, the CEO of TotalEnergies Patrick Pouyanné committed to reducing the price of a liter of diesel for individuals by around 10 cents and the price of a liter of GNR by 20 cents.

That is support of up to 35 cents per liter in total for farmers, whose government, already facing a major crisis with the student and yellow vest movements, fears mobilization at the end of autumn agricultural work.