French Gasoline Stations Running Dry, 10 Percent in Paris Area Face Supply Problems

A sign with the logo of French oil and gas company TotalEnergies is pictured at a petrol station in Reze, near Nantes, France, on Jan. 21, 2022. (Stephane Mahe/Reuters)

Gasoline stations in France are facing issues getting enough supplies to meet demand amid a strike announced by workers of energy giant TotalEnergies.

“There are temporary problems regarding distribution,” French government spokesman Olivier Veran told RMC Radio and BFMTV. Although 15 percent of the country’s gas stations were experiencing such “temporary difficulties” overall, 90 percent of stations in the capital city of Paris were facing no issues, he said. However, 10 percent of city stations are facing problems in securing enough fuel supplies.

In the Hauts-de-France region, roughly 30 percent of pumps were affected as they were unable to maintain fuel supplies.

The northern areas of France are reportedly the most affected. In the Somme, Pas-de-Calais, and Nord departments, police have prohibited the purchase and sale of fuel in jerry cans, according to RFI radio station.

Some gas stations have been asked to ensure priority access for medical transport, nurses, and doctors.

The shutdown of gasoline stations is primarily due to a strike by CGT trade union members at TotalEnergies, a French multinational integrated energy and petroleum company.

The strike has disrupted operations at two storage facilities and two refineries run by the firm. Two refineries run by Exxon Mobil also have been facing similar issues since last month.

Strikes and some unplanned maintenance activities have resulted in more than 60 percent of France’s refining capacity being taken offline.

Fuel supplies are also facing pressure due to TotalEnergies providing discounts on purchases, which have triggered an increase in demand. The company’s gas stations have reportedly seen an estimated 30 percent increase in demand due to the offer.

Labor Strike and Negotiations, Reserves

Trade unions are seeking higher wages as oil workers struggle with inflation. The annual inflation rate in France was 5.6 percent in September, up from just 2.9 percent in January. Since March, inflation has consistently remained over 4 percent.

CGT is demanding that TotalEnergies raise salaries by 10 percent. However, the management has refused such a salary increase this year and only wants to negotiate it in 2023, union delegate Thierry Defresne told Reuters.

In an interview with LCI television on Friday, Transport Minister Clement Beaune confirmed that the efforts to end the strike are ongoing.

“Today, there are talks between the companies and workers to unblock the situation,” he said. “We’re doing everything to ease the situation in the coming days, notably in the most difficult regions like northern France.”

On Wednesday, the French government announced that it had tapped into its strategic fuel reserve to ensure gas stations running dry receive necessary supplies. According to UFIP, the French association of petroleum industry, shortages at fuel stations are due to logistics, not insufficient supplies.