Fuel professionals prepare for prices of €2.40 a litre, Michel-Édouard Leclerc says

Fuel prices in France could climb to an unprecedented €2.40 per litre, according to Michel-Édouard Leclerc, the head of the strategic committee of the E. Leclerc retail group.

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Maybe all of this will not happen.

Speaking on LCI, Leclerc said professionals were preparing for that possibility as renewed hostilities in the Middle East fuelled fears of another surge at the pump. He did not predict when such a level might be reached and said the situation was too unpredictable to establish a clear outlook.

“Maybe all of this will not happen,” Leclerc said, while adding that he was “unable to map out a forecast for fuel prices.” He nevertheless said prices appeared to be near their maximum and could still move by around 20 cents per litre.

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I am unable to map out a forecast for fuel prices.

If prices stayed high and the increase became too severe, Leclerc said the government would have to intervene through fuel taxation. “There is a threshold at which public authorities will be forced, if it lasts and if it is too severe, to reduce fuel taxation somewhat, whatever form that takes,” he said.

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I think we are near the maximum levels.

The concerns followed a wave of US strikes in the Strait of Hormuz on Aug. 30 and an Iranian response against US interests in Kuwait on Sept. 3. An AFP calculation using government data put average diesel prices at €2.259 per litre on Friday, while SP95-E10 reached €2.090, its highest level since the Middle East conflict began.

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There is a threshold at which public authorities will be forced, if it lasts and if it is too severe, to reduce fuel taxation somewhat, whatever form that takes.