TotalEnergies threatens to end fuel price cap if French government imposes windfall tax

TotalEnergies CEO Patrick Pouyanné warned the company would scrap its fuel price cap in France if the government imposes a windfall tax on oil majors to fund new fuel aid measures.

"En cas de surtaxe sur nos raffineries, qui sont par ailleurs souvent déficitaires, nous ne pourrons pas maintenir le plafonnement des prix dans nos stations en France," Pouyanné said in an interview with Sud-Ouest, directly linking the continuation of the price cap to the absence of a new tax on refining operations.

The government is studying a windfall tax on oil majors like TotalEnergies as a potential funding source for expanding fuel assistance. Current fuel aid is reserved for drivers traveling more than 30 km per day and earning less than 16,880 euros per year. The government may expand aid to new professions such as taxis and self-employed nurses, and could remove the income condition.

A meeting is scheduled for Thursday evening around Sébastien Lecornu, who plans "une adaptation des dispositifs de soutien à l'activité économique." The government has ruled out cutting fuel taxes, leaving the windfall tax as a key option under consideration.

The threat from TotalEnergies comes amid renewed political pressure for a windfall tax following the company's record profits. Marine Le Pen called for such a tax on May 2 if the fuel price cap proved insufficient, and political parties renewed similar calls on May 1.