Fuel prices at record lows after four years, bringing joy to French motorists embarking on road trips
Fuel Prices in France See a Significant Drop
Good news for drivers in France as fuel prices have taken a noticeable dip this summer. The price drop is primarily attributed to a few key factors, including the slow but steady decline in the price of Brent crude oil from the North Sea and American (WTI) oil, a strengthening euro against the dollar, increased supply from OPEC+ countries, and a slow growth in demand.
The strengthening euro, due to the exchange rate evolution, automatically reduces fuel prices. According to recent data, the euro has strengthened against the dollar, rising from 1.02 in January to 1.16 currently. This has significantly impacted the cost of imported oil, leading to lower prices at the pump for consumers.
The increased supply and slow growth in demand are also contributing to the persisting low prices. Two major retailers, 711 E.Leclerc and U network, are selling fuel at cost price from August 1st to 2nd, further reducing the prices for drivers.
Markets remain concerned about a deterioration in global economic activity, which is unfavourable to energy demand. Despite this, the price of diesel has decreased by 8 cents per litre compared to the same time last year, and unleaded 95 has dropped by 13 cents.
However, it's important to note that this decrease is only a short-term relief. Economic models anticipate a mild increase towards the end of the quarter. According to these models, gasoline prices in France are expected to trend upwards in the coming years, with prices potentially reaching approximately 2.18 USD/liter in 2026 and 2.26 USD/liter in 2027.
The drop in fuel prices is not limited to thermal vehicles but also benefits electric vehicle drivers. The French company Electra, which operates charging points for electric vehicles throughout France, is offering a cost price fuel operation for its subscribers, allowing them to pay 29 cents per kWh instead of the average 54 cents until the end of the summer.
Oil-exporting countries of OPEC+ have increased their production of barrels, aiming for new market shares. On August 1st, 2025, Brent was around 71 dollars per barrel, a 10% decrease from 79 dollars on the same day last year and 86 dollars in 2023. On 5th July, Saudi Arabia, Russia, and six other OPEC+ members agreed to increase their daily production by an additional 548,000 barrels for the month of August.
The average price of diesel in July 2025 was 1.62 euros per litre, and that of unleaded 95 was 1.66 euros. The fuel operation includes petrol and diesel without any margin, making it an attractive offer for drivers during this summer season.
[^1^]: Source: Trading Economics [^2^]: Source: Reuters [^3^]: Source: French Ministry of Economy, Finance and Recovery [^4^]: Source: French National Institute of Statistics and Economic Studies (INSEE)
The cost reduction of imported oil, driven by the strengthening euro against the dollar, results in lower fuel prices for both conventional and electric vehicles in France. The French company Electra, responsible for charging points for electric vehicles, takes advantage of this situation by offering cost-price fuel operation, allowing electric vehicle drivers to pay 29 cents per kWh instead of the average 54 cents until the end of the summer.
