TotalEnergies keeps French fuel price caps for duration of Middle East conflict

Commitment to fuel price caps

Patrick Pouyanné, chief executive officer of TotalEnergies, confirmed on 29 August 2026 that the company will maintain fuel price limits across its French service stations for the duration of the Middle East conflict. The initiative, relaunched in July 2026, fixes maximum prices at 1.99 euros per litre for petrol and 2.25 euros per litre for diesel throughout mainland France, including rural regions and motorway service areas. TotalEnergies is the only global oil corporation that has introduced a retail price ceiling of this nature during the ongoing regional crisis. Pouyanné explained during an appearance with France Inter, Le Monde, and France Télévisions that industry peers have questioned the group's policy.

Yes, I said it, as long as the conflict lasts, we will continue to provide this protection.

Refining costs and crude market inflation

Crude oil markets have experienced elevated volatility due to hostilities in the Persian Gulf, lifting Brent crude to around $87 per barrel by late August 2026, compared to $70 per barrel before the conflict started. French national pump price data compiled by AFP from government records on 29 August showed all standard retail fuels exceeding 2 euros per litre. The nationwide average reached 2.035 euros per litre for SP95-E10, 2.129 euros per litre for SP98, and 2.219 euros per litre for diesel. Selling fuel below prevailing international rates increased TotalEnergies' program expenses from 200 million euros at the end of June to between 250 million and 300 million euros by late August.

Retail volumes and corporate tax liabilities

Lower prices at TotalEnergies forecourts produced substantial customer queues, increasing the company's French retail fuel market share from its standard 22% level to approximately 25%. Pouyanné stated that this volume increase did not generate financial profit because discount margins resulted in net costs per litre sold. The company, which maintains a workforce of 35,000 employees in France, doubled its second-quarter net profit to $5.4 billion on the back of upstream operations. Additionally, TotalEnergies is exploring pipeline infrastructure investments designed to bypass the Strait of Hormuz to safeguard maritime shipments. Addressing domestic fiscal policy, Pouyanné indicated that TotalEnergies will pay French corporate income tax in 2026 as well as an exceptional levy on large enterprise profits proposed in the 2027 draft budget, with liabilities likely reaching several hundred million euros.

Stance on windfall profit taxation

European governments have discussed potential windfall profit taxes on energy producers that generate increased revenues during the Middle East conflict. Pouyanné issued an explicit warning regarding any special taxation mechanisms targeting corporate returns. The chief executive stated that the implementation of a windfall profit tax would immediately prompt TotalEnergies to abolish its fuel pricing ceiling without possibility of reinstatement.

I said it clearly: if there is taxation somewhere, we will draw the lessons and there will never be a price cap at TotalEnergies again.