Inflationary Pressures: TotalEnergies Threatens to Reconsider Fuel Price Cap in France

2023-10-08 13:53:17

At the beginning of September, the energy giant in France, in this case, TotalEnergies, announced that it would maintain the cap on fuel prices in its stations at 1.99 euros per liter. It is a decision which aims to relieve the burden on the French overwhelmed by inflation. However, on Friday October 6, 2023, the CEO of TotalEnergies, Patrick Pouyanné, threatened to revise this price upwards if the State imposed more taxes, reports the Actulyon site.

It is in an inflationary context that the CEO of the oil group, which is at the head of a third of the service stations (3,400 stations) in France, announced on September 12 his intention to extend the cap on gasoline prices. and diesel at 1.99 euros per liter “ as long as prices remain high ».

An extension called into question?

During his trip to Lyon, the CEO of TotalEnergie told journalists that the extension of the fuel price cap will depend on the government’s decision regarding taxes. In other words, the possible implementation of taxes on refining will change the situation for next year: “ I said, for the year 2023, the government is asking to extend. But if he also wants to put taxes on refining, I don’t know if we will extend it » he affirms.

« The current debate seems a bit strange to me. I think it is an effective measure and therefore we will maintain it for as long as we can. If the State adds taxes to us, we will reconsider the measure. I am convinced that the right method is for Total to directly benefit the consumer from the efforts we make rather than through taxes. », added the CEO of TotalEnergies. “ I sell with a fixed price of 1.99 euros. I can tell you that on a certain number of sales, I don’t make any money », he continues.

And when asked for his opinion regarding a possible reduction in taxes or VAT on gasoline, he clarified: “ I don’t know if this is the solution, but I advocate, I am convinced, that the option of a floating TIPP where we block taxes according to the price is the right one… because at 2 euros, the French are starting to shout very loudly ».

As a reminder, a modification of the 2023 finance law, supported by several majority deputies, including Jean-René Cazeneuve, suggests extending for one year a tax that oil companies pay on their profits. According to the AFP, they justify this amendment by “ the prolonged nature of energy price inflation ».

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