Petrol prices predicted to rise above two euros a litre

Christophe de Margerie told Le Parisien earlier this week that an increase was "inevitable" as petrol prices hit a record high of 1.53 euros per litre last week. “There is no doubt that this [that a litre of Super Unleaded could push beyond the two-euro barrier] is going to happen. The only question is when?” he said.

However de Margerie’s suggestion has been met with stern criticism from Nicolas Sarkozy. Yesterday the president called de Margerie’s prediction “indecent” and promised to find a long-term solution to the growing cost of petrol.

On Monday the French treasury asked oil sector companies to provide 115 million euros worth of contributions towards cutting the cost of fuel for motorists. Yet de Margerie believes that this will only be a short-term solution.

The former minister for industry and the mayor of Nice, Christian Estrosi, said that the grant was “only a modest, symbolic gesture,” adding “it will benefit the oil companies more than the consumers.” Estrosi has previously attacked French-owned Total, suggesting that the company (which made 10 billion euros in profit last year) should lower their prices at the pumps.

The cost of crude oil shot up 7.8 per cent between February and March this year, with the value of a barrel rising to 82 euros, a 36.5 per cent increase on 2010.

The price hike has been blamed on the growing unrest in North African and the Persian Gulf, as well as a lack of confidence in nuclear power following the Fukushima disaster.

TD