Fuel prices: distributors margins have exploded since the war in the Middle East

In the midst of the Middle East war serving as an excuse for the surge in fuel prices, a confidential document from Bercy reveals significantly higher profit margins. Under pressure, distributors and the government are now clashing over a potentially explosive ceiling.

IN BRIEF

• At the end of April 2026, Maud Bregeon, Sébastien Lecornu, and Bercy’s services are caught up in an explosive report on distributors’ gross margins.
• The document shows how the Middle East war led to higher fuel margins, with record levels for diesel and gasoline.
• Amid threats of a ceiling decree and accusations of “unacceptable facts,” the political confrontation raises uncertainties about future pump prices.

Motorists were almost expecting it: with the fuel prices soaring due to the war in the Middle East, filling up at the pump was going to hurt. But as global oil prices see fluctuations, many are noticing that the prices displayed at stations do not truly reflect the observed decreases in the markets. The question arises: who benefits from each liter paid for just as dearly?

One element of an answer can be found in a government working document that several media outlets, including BFMTV and franceinfo, have been able to consult. This report, requested by the Prime Minister from Bercy’s services, dissects the distributors’ gross margins since the conflict began. And there, the figures tell a less reassuring story than the official speeches, further escalating the standoff between the government and the brands.

Fuel Prices: Higher Gross Margins Since the Start of the War
On April 19, during an interview with BFMTV, government spokesperson Maud Bregeon stated that no “undue increase” in fuel margins had been “observed” since the start of the Middle East war. However, a few days later, the Bercy document shows that the distributors’ margins in France are now higher than before the conflict. Before the crisis, outside of any particular tension period, the average gross margin hovered around 30 euro cents per liter, with about 35 cents for small independent stations and 25 cents for supermarkets.

Since the beginning of the war, diesel has seen the most increase. According to this working document, the average gross margin was still at 30 cents per liter at the beginning of the year. By the end of April, it reached 33.6 cents for diesel and just below 30 cents for gasoline. According to another note mentioned by BFMTV, the diesel margin even rose to 40 cents per liter at the peak before dropping back to around 34 cents in early April. This level remains higher than before the war, with some networks showing margins over 30% higher than usual.

Distributors Under Scrutiny and Threat of Margin Capping
The government report also highlights much more extreme cases, fueling anger at the highest levels of the state. Some distributors display gross margins of 39 to 43 cents, sometimes over 50 cents per liter of diesel, and close to 40 cents on gasoline. Companies like TotalEnergies, ENI, Esso, AVIA, as well as supermarket brands like Carrefour Market, Carrefour Contact, or Intermarché, are mentioned. An executive advisor even refers to “unacceptable facts,” as told to franceinfo, while the government has been emphasizing for weeks that everyone must contribute to improving purchasing power.

Prime Minister Sébastien Lecornu expressed irritation in recent days that prices are not dropping as fast as expected. During a visit to Marseille, he raised his voice: “There is something non-negotiable, when it increases globally, we understand that it increases at the pump. When it decreases globally, it should decrease at the pump just as quickly. If it hasn’t been decreasing for three weeks, it’s probably because we don’t completely agree on how to see things with distributors,” stated the head of government. He also expressed annoyance at the distributors’ “diversions,” such as their proposal to suspend Energy Saving Certificates (CEE) to lower pump prices, an idea supported by Jordan Bardella. In this tense climate, the possibility of a decree aiming to cap margins is back on the table, after already causing an uproar in mid-April. Oil companies and brands reiterate that these gross margins must cover transportation and salaries, and claim that their net margins remain fragile. However, the content of the note now puts distributors on the defensive, as the government’s decision-making looks challenging for the coming months.