PARIS—Most oil companies say price caps at gas stations are a terrible way to address the energy shock sparked by the Iran war. There is one major exception: France’s TotalEnergies.
FILE PHOTO: The logo of TotalEnergies is seen at the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 12, 2025. REUTERS/Benoit Tessier/File Photo (REUTERS)
The company, based just outside Paris, has capped prices at its 3,300 gas stations across France and pledged to continue doing so for as long as the conflict in the Middle East endures. It is the only Western oil company to limit fuel prices voluntarily.
The move reflects the threat of mass protests that can grind France to a halt and attack companies that run afoul of public opinion. Disgruntled French drivers have proved themselves a disruptive force in recent history, notably launching the yellow-vest movement in response to a proposed fuel-tax increase.
TotalEnergies’ surging profit—up 51% to $5.8 billion in the first quarter—has put a target on the company, fueling demands for a windfall tax on businesses benefiting from rising oil prices.
So far, the price caps have helped keep social peace in France.
“We do it because we are French. We are quite patriotic in that regard,” Chief Executive Patrick Pouyanné recently told French media, before adding: “We must be very clear: If there’s a windfall tax on refineries, we can’t keep the caps at our stations in France.”
Even with the price caps, fuel in France is far more expensive than in the U.S. TotalEnergies charges 1.99 euro a liter for gasoline. That is the equivalent of roughly $8.50 a gallon, compared with around $4.22 a gallon on average in the U.S. The difference is largely because of taxes.
American oil giants Exxon Mobil and Chevron have largely bucked pressure about rising gas prices since the start of the war. The Trump administration hasn’t jawboned the industry, instead aiming to bring down prices with a handful of industry-friendly measures including the suspension of federal gasoline tax.
Oil executives and economists say that price caps are counterproductive because they blunt market signals that would encourage new fuel production and limit consumption.
“We’re a firm believer that at the end of the day, to be able to manage what is a supply disruption, you need demand signals,” said Shell CEO Wael Sawan. “If you don’t manage it that way, what you’re going to have is significant challenges in the long run.”
TotalEnergies has ignored the conventional wisdom against price caps for several years. France’s biggest operator of gas stations capped prices at the pump beginning in 2023, when the war in Ukraine and the re-emergence of the global economy from Covid-19 lockdowns sent energy prices soaring. Since the Iran war, the company raised the caps from €1.94 a liter for all fuels to €1.99 for gasoline and €2.25 for diesel.
Last month, Pouyanné lowered the diesel cap to €2.09 over several holiday weekends, most recently last Sunday for France’s Mother’s Day.
“And for Father’s Day a bit later in June, so we don’t leave anyone out,” Pouyanné said to applause at the company’s recent shareholder meeting.
While TotalEnergies has operations across the globe, it retains a deep connection to France. The company’s senior executives are mostly French, graduates of the nation’s elite engineering schools. Pouyanné is sometimes called chef d’etat bis—head of state B—because he is seen as representing France in the company’s dealings with governments around the world.
TotalEnergies owns thousands of gas stations outside France, but Pouyanné said the price caps are reserved for French drivers. They happen to be a significant force among TotalEnergies’ shareholders: Its French employees own 5.5% of the stock, making them the second-largest investor after BlackRock.
France’s smaller gas-station operators have been infuriated by the price caps. They don’t have TotalEnergies’ network of refineries, meaning they need to buy fuel on the open market and can’t match the capped prices. A group of smaller operators say they are preparing a complaint to French authorities alleging unfair competition.
The price caps are currently below the price charged by rivals in many parts of France. In 2023, they cost the company between 400 million and 500 million euros, Pouyanné said, or as much as $580 million. Still, that could be significantly less than the cost of a windfall tax imposed under pressure of public outrage—a measure still being called for by far-left politicians.
“The French don’t like seeing people who are too rich, and they don’t like seeing Total make so much money,” said Jean-Pierre Favennec, an economist based in Paris.
