TotalEnergies to continue fuel price cap in France ‘as long as conflict lasts’ says CEO
This comes as the French government promises more pump help
TotalEnergies will keep its cap on petrol and diesel prices at its French forecourts for as long as the conflict in the Middle East continues, the company's chief executive has confirmed, while the government has separately pledged to extend support schemes for businesses hit hardest by rising fuel costs.
What is the fuel price cap?
TotalEnergies introduced the cap in March this year, shortly after the outbreak of the Middle East conflict, and relaunched it in July. Under the scheme, prices at all TotalEnergies stations in mainland France are held at €1.99 a litre for petrol and €2.25 a litre for diesel.
Speaking on France Inter on August 29, chief executive Patrick Pouyanné said the company would maintain the protection "as long as the conflict lasts". He noted that TotalEnergies is the only major oil company worldwide to have introduced such a cap, adding that rival oil bosses have looked at him "with a funny expression" over the move.
The cap comes at a cost: Mr Pouyanné put the price at somewhere between €250 million and €300 million, though he said he did not have an exact figure.
In return, the company has seen a modest rise in market share, from around 22% to 25%, as more drivers head to its pumps, and he added that the scheme had won TotalEnergies goodwill among the French public.
Prices above €2 a litre nationally
Despite the cap at Total stations, average pump prices across France have crept back above €2 a litre. Figures cited this week put SP95-E10 at around €2.036, SP98 at €2.131 and diesel at €2.219 a litre nationally.
You can use price comparison site carbu.com to check prices nationally or in your area of France.
Prices had eased over the summer as hopes grew of a de-escalation in the Middle East, bringing relief for holidaymakers, but the situation has since been unstable, pushing costs back up at the start of the new term.
TotalEnergies made a net profit of $5.4 billion (around €4.9 billion) in the second quarter of the year, double the figure from the same period last year.
Government to extend fuel aid for struggling sectors
Separately, the government has confirmed it intends to extend financial support for individuals and sectors most exposed to rising fuel costs. The current aid schemes were due to expire on Monday, August 31 but are still ongoing.
Energy Minister Maud Bregeon told BFMTV and RMC that firms would not be left without help. "We will not abandon anyone. These schemes will not be suspended," she said, though she gave no immediate detail on the level of the extended support or how long it would run.
Ms Bregeon said further details on the scale and duration of the extension would be set out "in the coming days", noting that discussions with affected industries were still under way.
She added that businesses in the greatest difficulty would still be able to submit applications for help in the weeks ahead, stating that the relevant application windows would remain open.
