TotalEnergies must lower gas cost, boost purchasing power: French spox

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French government spokesman Olivier Veran urged gas giant TotalEnergies on Tuesday to cut down on the price of fuel at its gas stations amid an attempt to lower living costs for the French and boost their purchasing power instead.

To refrain from excess profits tax, TotalEnergies reduced prices by 20 euro cents per liter ($0.22) per liter from September to November 2022 and by 10 euro cents more from November to the end of December 2022. The company's CEO, Patrick Pouyanne, reiterated last week that it was ready to sell fuel at reduced prices again if the price goes over 2 euros per liter.

In an interview with the France 2 broadcaster, Veran stated: "There is additional help that could be provided by Total. We are asking them to take measures. It is up to them to decide. They have said they are thinking about it. We want there to be also, aside from the government tools that are helping boost the purchasing power of the French, mechanisms provided by fuel retailers."

He added that there was no additional information concerning potential measures by TotalEnergies but he hoped it would take effect "as soon as possible."    

Fuel allowances of 100 euros for 10 million houses were vowed to be extended by French Finance Minister Bruno Le Maire until the end of March. Those who are eligible for the allowance are houses that earned no more than 14,700 euros for 2021. 

No gas shortage soon

Employees at the oil refineries of TotalEnergies took into themselves the country's trade unions and continued a string of strikes in opposition to the controversial pension reform proposed by the government.

Echos newspaper added that about 80% of employees at France's largest oil refinery in Normandy, 60% of staff at the bioprocessing factory La Mede in Chateauneuf-les-Martigues, and 50% of employees at a refinery in Donges partook in the strikes.

Furthermore, 30% of the staff of a fuel storage facility around Paris and a solid 100% of the staff of another fuel storage facility in northern France supported the national demonstration. According to Total Energies, there wouldn't be a gasoline shortage because gas stations had enough supplies to stay operating. 

TotalEnergies made a net profit of $5.7 billion in the 2nd quarter last year and is paying out billions to shareholders as its employees are pushing for higher wages. Le Maire even weighed in on the fact, saying that the oil giant, given its huge profits, had the capacity "and therefore an obligation" to raise workers' pay.