Fuel price cap costs estimated

Patrick Pouyanné, CEO of TotalEnergies, stated in an interview that the cost of the fuel price cap, which the company introduced on July 22, is expected to be around 500 million euros by the end of the year.

Price cap details and market context

The price cap sets gasoline at 1.99 euros per liter and diesel at 2.25 euros. However, the average diesel price in France exceeded 2.40 euros in September, indicating the cap is below the market rate.

Company's rationale and internal debate

Pouyanné described the decision as a "deliberate choice" and an "investment," even though he admitted it is "not very rational." The company's board initially questioned the decision, but the strategy aims to demonstrate the company's value to the French public.

Market share and brand impact

The price cap has increased TotalEnergies' market share, although each additional unit of market share costs the company a cent per liter. Pouyanné said the strategy has made the company "the most popular brand in the country" and helped "reconcile the French with capitalism."

Government's stance on taxation

Pouyanné noted that the government sometimes discusses taxing companies like TotalEnergies but also conducts surveys showing public preference for the price cap over taxes. He suggested the government "would like to do both."