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Macron wants fuel industry to sell at cost price
Global Banking & Finance Review®
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PARIS (Reuters) – French President Emmanuel Macron said on Sunday the government would ask the fuel industry to sell at cost price and would grant 100 euros ($106.52) in aid to the poorest workers who drive to work, to stem the impact of inflation on households.
PARIS (Reuters) – French President Emmanuel Macron said on Sunday the government would ask the fuel industry to sell at cost price and would grant 100 euros ($106.52) in aid to the poorest workers who drive to work, to stem the impact of inflation on households.
“The Prime Minister will bring together all the players in the sector this week and we will ask them to sell at cost price, that is to say that no one makes a margin,” Macron said in an interview with France’s TF1 and France 2 television stations.
“There is something we can work on, is to avoid that there are abusive margins done on refining,” he said.
Macron’s government had initially planned to encourage retailers to sell fuel below cost by temporarily lifting a ban on doing so, which the industry strongly rejected as being unaffordable.
On food prices Macron said the government wanted an “agreement to moderate margins”, accusing large groups of having maintained high prices despite a decline in inflation.
“Price freezing doesn’t work,” he said. We must “put everyone around the table, and find an agreement on the margins”, he said, adding that a proposal would be put forward next week.
Michel-Edouard Leclerc, the head of hypermarket giant E.Leclerc, said in an interview in weekly JDD on Sunday that fuel accounts for about 20% to 25% of the sales of some retailers, making it “inconceivable for the balance of our accounts to sell at a loss.”
($1 = 0.9388 euros)
(Reporting by Sybille de La Hamaide and Michel Rose; Editing by Sharon Singleton)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured by the Consumer Price Index (CPI) or Producer Price Index (PPI).
Cost price refers to the total expense incurred to produce a product or service, including materials, labor, and overhead costs. It is the baseline price before any profit margin is added.
The retail price is the price at which a product is sold to consumers. It typically includes the cost price plus any markup added by the retailer to cover expenses and generate profit.
Financial aid is assistance provided to individuals to help cover costs associated with education or living expenses. It can come in the form of grants, scholarships, loans, or work-study programs.
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