TotalEnergies Caps Fuel Prices at 1.99 Euros Amid Middle East Conflict

TotalEnergies Caps Fuel Prices Amid Middle East Conflict

Amid rising fuel prices driven by the Middle East conflict, French energy giant TotalEnergies capped fuel prices at its service stations. Led by Chairman and CEO Patrick Pouyanné, the company set a gasoline price ceiling of 1.99 euros per liter and a diesel ceiling of 2.25 euros. In mid-September, when average prices in France reached roughly 2.15 euros for gasoline and 2.35 euros for diesel, the gap drew drivers to the company's stations.

This relief comes at a cost. In late August, Pouyanné estimated that capping the rates cost the company between 250 and 300 million euros. Alongside the expense, TotalEnergies reported an increase in its French market share from about 22% to roughly 25%. Pouyanné pointed to longer queues at stations and improved public favor, though he clarified that the influx of customers does not offset the discount's cost.

Massive Global Profits and Independent Station Pushback

Meanwhile, financial reports reflect colossal earnings. In the first half of 2026, TotalEnergies' net profit reached approximately 11.2 billion dollars, a 72% surge compared to the same period last year. This figure encompasses the group's global operations, which benefited from high energy prices and robust refining margins, rather than solely reflecting French retail operations. Price caps thus coexisted with heavy profits in other sectors.

Competitors, however, have raised objections. An organization representing roughly a thousand independent service stations in France filed a complaint with the competition authority in July, alleging abuse of dominant position and unfair competition. Competitors argue that TotalEnergies can sustain prices they cannot match due to its upstream oil production and refining operations. Some operators warn the gap threatens their survival.

Pouyanné pledged in late August to maintain the price cap as long as the Middle East conflict continues, while issuing a warning to policymakers. Amid demands for windfall taxes on energy companies, he clarified that such levies could force an end to the price-capping policy, turning consumer relief into a central debate over energy crisis profits.