TotalEnergies has announced a reduction in fuel prices at motorway stations in France for the summer holidays.
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French oil and gas major TotalEnergies on Thursday announced fuel price cuts at highway stations across the country for the summer holidays, acknowledging “major tension” in the energy market following Russia’s war in Ukraine.
Under pressure from the French government to do more to help households amid the cost of living crisis, TotalEnergies speak it will reduce the price of 0.12 euros per liter ($0.13) on fuel from July 1 to August 31.
It is above the current government discount of 0.18 euros per liter, bringing the total discount at TotalEnergies service stations to 0.30 euros per liter.
The company says this equates to a saving of 15 euros for a 50-liter (13.2-gallon) tank. In Europe, a family car usually has a 55 liter fuel tank.
TotalEnergies said: “Over the past few months, rising energy costs have pushed up fuel prices and weighed on the purchasing power of people in France, especially the least-spenders, who cannot live without a budget. car for commuting”.
“In response, TotalEnergies has once again committed to its customers in France with a discount this summer, which is expected to reach around 17 million.”
Macron’s government has pressured TotalEnergies to do more to help households with soaring energy bills.
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The government of French President Emmanuel Macron has put pressure on TotalEnergies to help households with soaring energy bills at a time when soaring inflation drives up prices of everything from food to fuel.
In a consistent trend among oil and gas giants in the wake of Russia’s invasion of Ukraine, TotalEnergies reported strong quarterly profits on the back of strong commodity prices. It prompted calls for policymakers in Europe to step in to tax their surplus cash.
Shares of Paris-listed TotalEnergies fell 1% in morning London trades. The company’s stock price is up more than 14% to date.
Fear of supply shortage
The head of France’s major energy companies on Sunday called on households and businesses to immediately reduce their electricity consumption in response to Russia’s tightening of Europe’s gas supplies. Europe, according to Reuters.
Engie, EDF and TotalEnergies executives say it’s important for consumers to reduce overall consumption to prepare for a looming energy crisis.
The concerted plea to reduce energy use came shortly after Germany announced its transition to the so-called “warning level“Its emergency gas plan. This decision means that Europe’s largest economy now sees a high risk of long-term gas supply shortages amid reduced Russian flows.
Concerns about severe winter gas shortages in Europe are due to the risk of total supply disruptions to the EU, which receives about 40% of its gas through Russian pipelines.
The bloc is trying to rapidly reduce its dependence on Russian hydrocarbons in response to the Kremlin’s months-long conflict.
