TotalEnergies Extends Fuel Price Cap Amid Soaring Costs

14:40

As fuel prices remain above 2 euros per liter in France, TotalEnergies plans to maintain its price cap mechanism for as long as the conflict in the Middle East impacts oil markets. This measure already represents several hundred million euros for the company.

The ongoing tensions in the Middle East continue to be felt at French gas stations. In response to rising energy prices, TotalEnergies has decided to extend its fuel price cap. CEO Patrick Pouyanné confirmed on Saturday that the mechanism would remain in place "as long as the conflict lasts."

Since this summer, the French group has limited the price of certain fuels in its network. The cap has been set at 1.99 euros per liter for gasoline and 2.25 euros for diesel, with particular attention given to stations located in rural areas and on highways.

Prices Still Above Two Euros

This decision comes as fuel costs remain particularly high in France. As of August 29, the average price reached 2.035 euros per liter for SP95-E10, 2.219 euros for diesel, and 2.129 euros for SP98, according to government data compiled by AFP.

In this context, TotalEnergies stations are experiencing high traffic. Patrick Pouyanné estimates that the company's market share may have temporarily increased from around 22% to nearly 25%.

This situation reflects the appeal of the price cap for drivers, but it also represents a significant cost for the company.

Up to 300 Million Euros in Lost Revenue

The CEO of TotalEnergies now estimates the cost of the mechanism at 250 to 300 million euros. The group is indeed selling some of its fuels at prices lower than those corresponding to international market conditions.

Nevertheless, Patrick Pouyanné stands by this policy, presenting it as a form of protection for consumers during a period of high energy volatility.

However, this strategy could become more challenging to maintain if geopolitical tensions persist. The leader has also warned that any new taxation on the profits of energy companies could jeopardize the price cap.

A Mechanism Under Pressure

The question of a potential tax on "superprofits" remains at the heart of debates in several European countries. When asked whether TotalEnergies would be affected, Patrick Pouyanné indicated that the group would take the consequences of such a measure into account.

The message is clear: TotalEnergies is currently willing to bear the cost of the price cap, but considers that this policy cannot become sustainably incompatible with its taxation and economic model.

For drivers, the measure serves as a buffer in a context where prices remain high. Its continuation will now largely depend on the evolution of the conflict in the Middle East and its consequences on global energy markets.