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TotalEnergies logo in Nantes, France
Photo: STEPHANE MAHE / REUTERS
Under pressure from the government, the oil company TotalEnergies is accommodating its inflation-stricken customers in France with a higher tank discount.
In the months of July to August, fuel prices would be reduced by 12 cents per liter - 2 cents more than the previous tank discount, which TotalEnergies had extended until the end of the summer.
"Rising energy costs have been driving up fuel prices for months and are affecting the purchasing power of people in France, especially those who can least afford it and for whom the car is essential," said the group.
A spokesman declined to provide details about the impact on TotalEnergies' profits.
Together with the state fuel discount of 18 cents per liter, consumers can save a total of 30 cents per liter at the 123 Total petrol stations in France by the end of August.
Leclerc wants to follow suit
The French supermarket chain Leclerc, which also operates gas stations, could soon follow TotalEnergies' example.
"Leclerc intends to be the cheapest - we will follow suit or take other measures," said CEO Michel-Edouard Leclerc in an interview with the television broadcaster BFM.
Other rivals such as Shell, Esso France and BP France were initially unavailable for comment.
Some governments, such as the UK, have introduced a special tax for oil and gas companies that are posting record profits thanks to high energy prices.
France has so far been reluctant to take such a step and is instead putting pressure on companies' pricing.
In Germany, the government reduced the energy tax on fuel to the European minimum for three months, which according to the Ministry of Finance means 30 cents per liter less for petrol and 14 cents for diesel.
A month after the start, however, many motorists are disappointed by the fuel tax reduction.
On no day since June 1 has petrol or diesel been cheaper by the full amount of the tax relief than on May 31.
This emerges from current figures from the ADAC on Thursday.
In the case of diesel in particular, the relief was quickly eaten up by a price increase, so that the fuel was even more expensive than before the tax reduction.
Recently, fuel prices have given way again somewhat: On Wednesday, Super E10 cost a nationwide daily average of 1.861 euros per liter.
This is the lowest value in the month, but only 29 cents less than before the tax cut of 35.2 cents.
Diesel was 2.019 euros per liter.
This makes it 2.5 cents cheaper than before the tax cut of 16.7 cents.
Diesel was the cheapest in June on the first day - at that time the price was at least 11.6 cents lower than on May 31.
On Thursday, the last day of June, the current slight downward trend in diesel continued.
The E10 price was largely unchanged.
"The price level is still massively inflated - at least 25 cents for premium petrol, significantly more for diesel," said ADAC fuel market expert Jürgen Albrecht.
“Right now, diesel is going in the right direction easily, but prices still have a long way to go before they are reasonable again.
This is a heavy burden for motorists," he emphasized, and warns: "There is still a risk that the currently excessive price level will become permanent as a result of getting used to it."
However, the fact that fuel prices tended to rise in June is an effect that did not only occur in Germany, as figures published by the EU Commission on Thursday show.
If you factor out the effect of the tax cut, Germany is roughly in the middle for super petrol, while for diesel it is one of the countries with the stronger increases.
Antitrust watchdogs observe high gaps to oil prices
The Bundeskartellamt pointed out that there was a large gap between fuel prices and crude oil prices in June.
Observations like these are "an important indicator in our close monitoring of price movements overall," said President Andreas Mundt.
The price development in neighboring countries could "give additional information".
For reliable conclusions, however, an in-depth analysis is necessary, Mundt continues.
"This is exactly where our sector inquiry with the focus on refineries and wholesalers should start and in particular examine the market structure, cost structures and actual profit margins in more detail." According to the Cartel Office, around 20 German refineries are currently being comprehensively surveyed.
dab/Reuters/dpa