FX.co ★ France cheers TotalEnergies’ decision to curb gasoline prices

French energy and petroleum giant company TotalEnergies intends to stick to its large-scale fuel price reduction program. The company will maintain a gasoline price of €1.99 per litre at all its petrol stations across France until the end of 2023.

CEO Patrick Pouyanne assured motorists that the company would maintain its obligations in the context of the nonstop rise in fuel prices. The energy giant affirms that gasoline prices will not be raised higher than €1.99 per litre until the year end. The rule will be applied to all 3,400 service stations in France owned by TotalEnergies. Moreover, the company is offering a discount at 2,200 service stations on the French motorway network.

The board adopted such measures in March 2023 after President Emmanuel Macron called on petroleum corporations to introduce a discount on petroleum fuel sold at service stations. This measure was needed to help citizens cope with soaring inflation, in particular elevated energy prices.

Earlier, in the fall of 2022, TotalEnergies announced that it would cut fuel prices by €0.20/litre in September-October. This measure was followed by another discount of €0.20/litre from November 1 until December 31. The company made this decision to obtain an exemption from the luxury tax. According to the annual financial report of TotalEnergies, the oil giant managed to ramp up its net profit by 28% to €20.528 billion in 2022.

Experts say that gasoline prices in France have been growing in recent months. The price tag tops €2/litre at most service stations around the country. However, the French government pledged that gasoline prices would not surpass this level despite a 15% jump in energy costs and the fact that the government cancelled the discount on fuel as a previous measure.

In the week from August 21 to 26, French Prime Minister Élisabeth Borne took notice of a sharp increase in fuel prices at service stations. Nevertheless, she pointed out that the authorities did not expect a considerable rise in gasoline prices in the coming weeks. She also reiterated that most oil companies are obliged to sustain outlet prices at not higher than €2/litre. Last fall, the authorities forced oil companies to introduce a discount of €0.3/litre amid runaway inflation of energy prices. Later, the discount was revised to €0.1/litre.