Fuel Prices in France Drop to Three-Year Low – But an Increase Looms for January

Fuel prices in France have reached their lowest level in over three years, offering relief to motorists before a planned price increase in January 2026. Here’s what’s driving the drop – and why it won’t last.

French motorists are ending 2025 on a positive note as fuel prices fall to their lowest levels in more than three years. According to the Ministry for Ecological Transition, the average price of SP95-E10 petrol now sits around €1.599 per litre, while diesel averages €1.529 per litre — figures not seen since 2021.

This relief has been driven largely by a sharp decline in global oil prices. Brent crude has recently hovered around $60 (USD) per barrel, its lowest point since mid-2022. Coupled with a stronger euro against the dollar, this shift has significantly eased import costs for French distributors.

Why Are Fuel Prices Falling?

Several key factors have contributed to this unexpected drop:

Falling crude oil prices: Weaker demand in China and concerns over global economic growth have pulled down the oil market.
Increased OPEC+ production: Higher global output has led to oversupply, pushing prices even lower.
Stronger euro: The euro’s rise against the dollar makes oil imports cheaper for the eurozone.
Retailer competition: In the lead-up to Christmas, major supermarket chains such as Leclerc and Intermarché offered fuel at cost price, amplifying the downward momentum.

According to Francis Pousse, head of Stations-Service and New Energies at the Mobilians union, “The decline in oil prices is the main driver behind the drop in prices at the pump.”

The Calm Before the Storm: A January Price Hike

Unfortunately for drivers, this period of lower prices is unlikely to last. From January 1, 2026, motorists are expected to see fuel prices climb by 4 to 6 cents per litre, largely due to adjustments in France’s Energy Savings Certificates (CEE) program.

This government scheme requires energy suppliers to fund energy-efficiency initiatives under a “polluter pays” principle. Starting next year, these obligations will become stricter, increasing the operational costs for fuel distributors — costs that will inevitably be passed on to consumers.

Experts estimate that this policy shift could add:

€0.04 to €0.06 per litre to the pump price
Approximately €2 to €3 extra for a 50-litre tank

Francis Pousse warns that motorists can expect to feel the price increase during the first two weeks of January.

Looking Ahead: What Can Motorists Expect in 2026?

While this late-2025 price drop has provided temporary relief, analysts predict that market volatility will continue into the new year. Global oil prices could fluctuate depending on:

Geopolitical tensions affecting supply routes
Shifts in OPEC+ production policy
Currency exchange variations between the euro and the dollar
Domestic tax and energy policy adjustments by the French government

In the longer term, France’s push toward greener mobility — including electric vehicles and renewable fuels — may help reduce dependency on fluctuating fossil fuel prices. However, for now, many drivers will need to brace themselves for a more expensive start to 2026.

Quick Summary: Key Takeaways

Lowest fuel prices in 3+ years: SP95-E10 at €1.599/L, diesel at €1.529/L.
Main reasons: Oil price collapse, strong euro, and competitive retailer pricing.
Incoming increase: +4 to +6 cents per litre from January 2026 due to environmental policy updates.
Expected impact: +€2–€3 per full tank for the average driver.