French Prime Minister Sebastien Lecornu announced on Wednesday that the government will release ten million barrels of diesel into the domestic market to help alleviate rising fuel costs. The strategy aims to ease financial pressure on consumers as energy prices have climbed in recent weeks.
Lecornu explained during a televised address that the stockpile diesel was acquired prior to the current price escalation. By offering these supplies to distributors at cost price, the government estimates that fuel costs at the pump will decrease by between 12 and 18 cents per litre.
Ten million barrels is a lot of oil. I wonder if this will create more market distortion than it solves.
I wish they had done this months ago. Prices have been climbing steadily and it hurts everyone.
Twelve cents a liter sounds good on paper, but will distributors actually pass the savings on to consumers?
Finally, some relief for drivers who are already struggling with the rising costs. Hope it lasts.