Fighting the inflation: TotalEnergies to keep France fuel price cap in 2024
Business
Move comes as government decides against extending windfall tax
PARIS (Reuters) – TotalEnergies will keep a 1.99 euro per litre cap on French fuel prices throughout 2024, French Finance Minister Bruno Le Maire said on Wednesday, after the government's budget bill did not extend a windfall tax on energy firms.
"TotalEnergies took this commitment. I welcome this decision," Le Maire told RTL radio.
In September, TotalEnergies had said a 1.99 euro per litre cap on fuel prices, originally due to expire at the end of 2023, would be extended at all its petrol stations in France beyond Dec 31 and remain in place "as long as prices remain high".
But on Oct 6, TotalEnergies CEO Patrick Pouyanne told French news website ActuLyon the French oil giant could end the price cap if the state hit the oil giant with new taxes.
"We think that the prospect of a tax was a means to put pressure on Total, which explains Total's announcement that it would keep the 1.99 euro per litre cap," lawmaker Veronique Louwagie with the conservative Republicains told Reuters.
In September, Le Maire had raised concern about "excessive profits" by refiners but later stopped short of rolling over a windfall tax in the 2024 budget bill, which is currently going through parliament.
Socialist lawmakers proposed an amendment to the budget bill that would have rolled the measure over, but it was rejected in the finance commission.
CHECK ON ANTI-TRUST BEHAVIOUR
France's antitrust authority said on Wednesday it had questioned companies producing and selling food and non-food items over possible anti-competitive behaviour, without naming any of them.
"(They are) suspected of having put in place anti-competitive practices," the Autorite de la concurrence said in a statement, adding it would not comment any further.
The questioning took place on Tuesday, the watchdog said. It comes at a time of heightened scrutiny over food and non-food prices in the country, with the government pressing retailers and global multinationals to agree on price cuts to shield French consumers from inflation.
