Oil prices may crash further as France plans to ban petrol, diesel-driven cars

France is set to ban the sale of any car that runs on petrol or diesel by 2040.

Nicolas Hulot, France ecology minister, stated that the planned ban on fossil fuel vehicles was part of a renewed commitment to the Paris climate deal.

BBC quoted Hulot as saying that France also planned to become carbon neutral by 2050.

Hybrid cars make up about 3.5% of the French market, with pure electric vehicles accounting for just 1.2%.

The drop in demand for diesel and petrol driven cars will go a long way in reducing the demand for oil, and in turn drive a decline in global crude oil prices.

“The fight against climate change cannot depend on the result of elections in one country of another. When a country signs an international agreement it has to fulfill its commitments,” Macron said.
“There will be new administrations. I’m pretty sure President Trump hasn’t read the articles of this treaty. There is nothing to renegotiate here.
“France has decided to become carbon neutral by 2050 following the US decision,” Hulot said, adding that the government would have to make investments to meet that target.”

Earlier this week, car manufacturer Volvo said all of its cars would be at least partly electric from 2019, an announcement referenced by Hulot.

He said he believes French car manufacturers – including brands such as Peugeot-Citreon and Renault – would meet the challenge, although he acknowledged it would be difficult.