French Bakeries and Small Businesses Squeezed by Surging Fuel Costs

In the early morning hours, as the lights turn on at Kevin and Sandrine Los's small bakery in Saint-Just-en-Chaussée in northern France, the oven is already operating at 270 degrees Celsius to give the baguettes their crispy crust. However, running it has become significantly more expensive in recent months. When the couple first turned on the oven at their bakery in March, they paid 2,230 euros for 2,000 liters of heating oil. Last week, they paid nearly the same amount for just 1,200 liters. The spike in fuel prices since the outbreak of the war in Iran on February 28 is weighing heavily on the couple and many other small businesses across Europe.

The Impact on Small Businesses and Bakeries

"At first it was a good deal, because an oil-fueled oven is more economical than an electric one," Kevin said. "That was true until the price of fuel went up by 50%. So yes, now it's no longer a good deal." More than 34,000 bakeries operate in France, together producing about 6 billion baguettes a year, according to the country's National Federation of Bakeries and Confectioneries. About a quarter of them use ovens powered by oil or gas. "All this excess energy spending is lost income," Los told the Associated Press. "This is salary we cannot take for ourselves, wage increases we cannot give to employees, and investments we cannot make."

Political Pressures and Government Aid

Fuel price hikes are a politically sensitive issue in France, historically fueling movements like the "Yellow Vests." The French government announced a relief package worth an estimated 450 million euros for households and businesses hit by high prices, including subsidies for commuters and heating assistance. Meanwhile, small business owners like food truck operator Martial Rieland report that filling a diesel tank has surged from 120 euros to 200 euros, forcing them to turn down long-distance jobs and reconsider heating their homes this winter.