this post was submitted on 20 Sep 2023
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Europe

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The French government has announced plans to allow retailers to sell fuel at a loss - even though French law currently prohibits doing so - with hopes that the measure will bring down prices at the pump for consumers.

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[–] [email protected] 29 points 1 year ago (3 children)

Hm I'm not convinced that's a good idea or even one that works. It probably only drives those who can't afford sell-at-loss prices into insolvency before prices rise again. Imo the high gas prices aren't even the main problem, it's the lack of affordable and reliable alternatives.

[–] [email protected] 17 points 1 year ago (1 children)

It probably only drives those who can’t afford sell-at-loss prices into insolvency

That's exactly why it's generally not allowed.
I also don't really see what should motivate petrol companies to keep prices low after pricing out smaller competitors.

[–] [email protected] 5 points 1 year ago

France is run by neoliberal dipshits now. They probably have decided that they want the small places out of business to "improve efficiency." Also short-termist deregulation policies that leave everyone off worse in the long run is kinda their bag.

[–] [email protected] 9 points 1 year ago

That's the reason it's banned in the first place.

Large companies would come into a market and sell their products for huge losses until the local competition went bankrupt. After the competition is gone, prices would go much higher than they were before.

[–] [email protected] 8 points 1 year ago

This is probably just going to cause small individual retailers to go under while being taken over by larger groups. This is a bad move that isn't even going to move prices in a meaningful way.