Soaring oil prices at the pump will increase in France "fairly quickly"

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The surge in oil prices following the attack on Saudi facilities is a "considerable" event that will translate "fairly quickly" by an increase of about five cents at the pump in France, warned Monday. professionals in the sector.

"We can expect fairly quickly to increase the order of four or five cents" because "large companies reflect the day-to-day price changes in the Rotterdam market on gasoline and diesel" Francis Duseux, president of the French Union of Petroleum Industries (UFIP), told AFP.

"When you pay 1.50 euro on a liter of gas, you have about 50 cents of raw materials, refining and distribution," the rest is made up of various taxes, he said.

It is therefore this fraction of about a third of the price at the pump that follows the increase in prices.

"Five cents, assuming it stays at this level, it's quite considerable. This is perhaps the most disturbing for the French, "said Francis Duseux.

Oil prices climbed 10 percent on Monday morning, two days after attacks on oil infrastructure in Saudi Arabia led to a halving of production.
They caused a sharp reduction in production of 5.7 million barrels a day, or about 6% of global supply.

"This is a frontal military attack, surprising, unexpected" which represents an event "quite considerable" for the sector, commented M.Duseux.

However, France is safe from a supply disruption, according to him: "we have in France three months of reserve stocks, it is the law that requires us to have in storage three months of consumption. from the previous year ".

"In case the supply of crude becomes a little more tense, I think that there would be no problem to continue supplying the French at the service stations or to fill their tank of domestic fuel," he indicated.

The evolution of the situation will now depend on several factors such as the time needed to repair the damaged installations, the mobilization of Saudi stocks and the increase in the production of other countries but above all the diplomatic and possibly military reaction.

"The danger is, could we see a conflagration of this region, with all the consequences that it could have? Frankly, I think this is not desirable, "concluded Mr. Duseux.



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