TotalEnergies to maintain fuel price cap at rural stations in France

Total Energies chief executive Patrick Pouyanné announced that they will continue to apply fuel price caps across thousands of service stations in France and especially in rural areas.

He explained that this policy remains necessary as fuel prices continue to adjust unevenly across the country. 

“The good news is that if only 1,000 stations need the cap, it means 2,300 stations will already display a lower price,” he said speaking during a National Assembly on June 17 , adding that the company would not increase prices while market levels continue to decline.

He said around 2,000 stations still benefit from the company’s €1.99 per litre petrol cap, while approximately 1,000 stations remain covered by a €2.09 per litre diesel cap. At the same time, about 2,300 stations are already selling diesel below the capped level as market prices fall.

Mr Pouyanné said the remaining capped stations are often in rural areas, where logistics costs are higher and price adjustments tend to lag behind in comparison with urban areas.

“There are still 1,000 stations, and these are often rural stations that benefit first and foremost from these price-capping policies because their supply costs are the highest,” he said.

One of the reasons rural stations may take longer to benefit fully from falling wholesale prices, is that they filled storage tanks when prices were higher and will only gradually replenish stocks at lower costs.

This often creates a temporary delay between falling wholesale prices and retail pump prices.

Mr Pouyanné also warned that global fuel markets remain affected by damage to refining and transport infrastructure in the Middle East. 

He said rebuilding facilities such as refineries and gas liquefaction plants would take time, noting that TotalEnergies’ refinery in Saudi Arabia, operated with Aramco, would require around six months of repair work. 

Fuel prices continue to fall

Fuel prices in France have meanwhile dropped to their lowest level since the end of February, according to government data, as global oil markets ease following reduced geopolitical tensions.

Diesel now averages just under €1.90 per litre, marking a fall of more than 10 cents in a week and around 40 cents below the peak recorded in April.

Government cautious on timing

President Emmanuel Macron has expressed cautious optimism that further declines could follow as global oil markets stabilise, but warned that it may take several weeks for lower prices to be seen at the pump. 

Economy Minister Roland Lescure has also said that while prices are moving in the right direction, “a little more time” is needed before they return to pre-crisis levels, even if the downward trend continues.