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.

  • Flughoernchen@feddit.de
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    1 year ago

    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.

    • geissi@feddit.de
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      1 year ago

      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.

      • anachronist@midwest.social
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        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.

    • droans@lemmy.world
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      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.

    • jonne@infosec.pub
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      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.