Windfall taxes on oil companies are the talk around the world as consumers grapple with high energy costs.
is trying to head one off by committing to cut prices. The company said it will cut fuel prices by 20 eurocents a liter compared to global market prices from September to November, and a 10 eurocents a liter reduction from November to the end of the year.
French gasoline prices were quoted this week at €1.95 per liter — about $7.50 per gallon — so the initial cut amounts to a 10% reduction.
“We prefer to make an immediate and direct contribution to our customers, rather than an indirect tax which would penalize our refineries,” said Patrick Pouyanné, chairman and CEO of TotalEnergies.
Lawmakers in France have proposed a tax of as much as 25% on energy and transport giants. TotalEnergies didn’t comment when asked whether the reductions would remain if France goes ahead with the tax.
TotalEnergies operated 3,479 service stations in France last year.
TotalEnergies shares edged higher on Friday and have rallied 35% this year.