French Motorists Reduce Fuel Consumption in Response to Price Increases

French motorists have shown a significant decrease in fuel consumption in response to short-term price increases, according to recent data. The study, conducted using daily banking records from September 2021 to January 2023, revealed that when fuel prices rise by 1%, motorists reduce their fuel purchases by an average of 0.21% to 0.40%. The price sensitivity was found to be three times higher among low-mileage drivers compared to high-mileage drivers. However, the income level and type of housing did not significantly affect this trend.

To counter the rising fuel prices caused by the surge in oil prices, the government introduced pump discounts in 2022. These discounts have proven beneficial for motorists, with an average cost reduction ranging from €51 to €81. Higher-income households, who tend to consume more fuel, benefited more from these measures, receiving discounts between €64 and €115. In contrast, the lowest-income households received discounts ranging from €29 to €48.

The study also highlighted the importance of fuel consumption adjustments in rural and suburban areas, as well as among high-mileage drivers. These groups, with higher average fuel consumption, were found to significantly reduce their fuel volumes in response to price increases.

Overall, the findings shed light on the behavior of French motorists and their ability to adapt their fuel consumption in response to short-term price fluctuations.

https://www.insee.fr/fr/statistiques/7645853


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