A decree has been published with a view to releasing strategic stocks of diesel to lower prices at the pump
The government authorizes the sale of 1.6 million m3 of stocks to reduce prices at the pump from November.
Quick Look
- A decree published in the Official Journal authorizes the sale of 1.6 million m3 of strategic diesel stocks.
- This measure, aiming for a reduction of 12 to 18 cents per liter, requires distributors to fully pass on prices at the pump from November 1.
AI-generated summary
Why It Matters
The government is seeking to mitigate the rise in diesel prices observed since the beginning of October. Sagess usually manages these stocks in the form of a loan.
He was expected. A decree setting the economic conditions for the release of strategic diesel stocks announced at the beginning of October by Prime Minister Sébastien Lecornu was published on Saturday October 24 in the Official Journal. The decree 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.
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.
Extension of the help desk
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.
A separate decree published on Saturday also extends the aid window for the purchase of non-road diesel (GNR) for agricultural work until December, at a rate of 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.
What to Watch
AI outlook — possibilities, not facts
Application of the drop in prices at the pump from November 1.
Very likely · Within days
Open Questions
- What will be the exact price set by decree?
- How will the effective pass-through by distributors be monitored?
