The capping of fuel prices in France has cost TotalEnergies 200 million euros since the start of the war in the Middle East, according to its CEO Patrick Pouyanné

The capping of fuel prices operated by TotalEnergies in France has resulted in a shortfall of around 200 million euros for the company since the start of the war in Iran, declared the group’s CEO Patrick Pouyanné, before a parliamentary committee on Wednesday June 17.

“We are at around 200 million euros” of cost for this cap on the price of fuel put in place since the start of the conflict in the Middle East, declared the CEO of TotalEnergies, questioned by the president of the Finance Committee of the French National Assembly, LFI deputy Eric Coquerel. This is an approximate calculation, based on what the group would have charged as prices in its service stations regardless of the crisis, explains Patrick Pouyanné.

The manager also suggested that this cap forces the company to sell its fuel at a loss, because “the ceiling is lower than the cost price”. The boss of TotalEnergies, accused of unfair competition with other service station operators, particularly in mass distribution, affirms that it is the integrated model of the oil-gas giant, from the oil field to distribution, and good results which allow the group to “finance” this ceiling. TotalEnergies recorded 4.96 billion euros in profits in the 1st quarter, a jump of 51% over one year.

“So criticize” this measurement, “I admit I have difficulty understanding it”reacted Patrick Pouyanné, who also reiterated his threats to withdraw the cap if the State were to adopt a surcharge on company income. “If Parliament moves towards additional taxation, we will learn the lessons (…). We cannot want to take the same money from us twice”he said.