- TotalEnergies commits to maintaining price caps at the pump as long as the conflict in the Middle East continues.
- Average fuel prices in France have once again exceeded the €2 per litre threshold.
- The measure has already cost the oil group between €250 million and €300 million.
- CEO Patrick Pouyanné threatens to permanently scrap the discount if a specific windfall tax is introduced.
Price cap extended as market rates soar
Pressure on motorists’ budgets shows no sign of easing across France. At the end of August, average prices for all fuel types were above the symbolic two-euro-per-litre mark, with SP95-E10 at €2.035, diesel at €2.219, and SP98 at €2.129. In response to this widespread rise in fuel prices beyond €2 per litre, TotalEnergies has pledged to extend its price-capping mechanism. The French oil group will continue to apply its limit of €1.99 per litre for petrol and €2.25 for diesel at its stations, particularly on motorways and in rural areas, for as long as the conflict in the Middle East persists.
Financial cost to the group and increased footfall
This consumer protection scheme has a direct impact on the company’s accounts. Initially estimated at €200 million at the end of June, the cost of the measure has now reached between €250 million and €300 million. Despite an increase in market share due to the influx of motorists, the operation represents a direct cost to the company estimated at between €250 million and €300 million. The group’s stations are seeing higher footfall, reaching approximately 25% market share compared to 22% in normal times. However, management points out that this surge does not generate additional profits on distribution, as the fuel is resold at a rate lower than international market prices.
Tensions over windfall taxes
The question of maintaining this cap remains closely linked to upcoming fiscal decisions. While instability near the Strait of Hormuz has generated significant gains for energy giants, debates over taxing exceptional profits have resurfaced. The group’s management warns that the introduction of a targeted windfall tax would lead to the immediate and permanent withdrawal of the price-capping scheme. Patrick Pouyanné indicated that if such a specific contribution were to be applied, the company would take the necessary steps by permanently ending all initiatives to moderate prices at the pump.
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Uncertainty over the budget and exceptional taxes
The prospect of an exceptional contribution from large companies, which could be renewed in the 2027 budget proposal, is also drawing reactions from politicians and the energy sector. On the government side, reservations have been expressed regarding the renewal of the exceptional surcharge in its current form, to avoid sending a negative signal to investors. Sébastien Lecornu has advocated for reopening discussions, stressing that this tax must remain temporary. For its part, TotalEnergies anticipates paying corporation tax in 2026 thanks to the profits made and predicts that the exceptional surcharge, if maintained, could cost it several hundred million euros.
