PARIS—Faced with soaring fuel prices, the French government announced the release of 10 million barrels of diesel from its strategic reserves, aiming to ease the burden on consumers.
Prime Minister Sébastien Lecornu announced Wednesday that
the fuel will be made available to French distributors at a price based on the
cost at which the reserves were acquired before the recent market surge.
Government estimates the measure could result in a price
reduction of between 12 and 18 euro cents per liter for diesel at service
stations. The program is expected to last three months.
The decision is part of a coordinated effort among the major
G7 economies, which agreed to mobilize strategic oil reserves to address the
impact of the current energy crisis. France will contribute 10 million of the
100 million barrels stipulated in the agreement.
The French government indicated that the released volumes
will be distributed among market operators and will be subject to controls to
ensure that the reduction in supply costs effectively reaches consumers.
With this measure, authorities seek to alleviate the impact
that high fuel prices are having on households and sectors that rely heavily on
diesel, while tensions persist in international energy markets.
The release of reserves is a temporary measure: once the
crisis is over, the strategic reserves will need to be gradually replenished.