French energy giant TotalEnergies announced on Thursday it will cap petrol and diesel prices at its service stations in mainland France for the next three weeks, as oil prices surge amid the conflict in the Middle East.
Petrol will be capped at €1.99 per litre and diesel to €2.09 per litre, the company said.
The move comes after oil prices rose above $100 a barrel following Israeli and American air strikes on Iran on 28 February and Iranian retaliation that has left the region in chaos.
The International Energy Agency said on Wednesday that its member countries had agreed to release 400 million barrels of oil from strategic reserves, the largest coordinated release to date. But the move failed to calm markets as fears grew over disruptions to supplies.
"The group has been observing the highly fluctuating situation on the oil markets since the start of the conflict in the Gulf," said TotalEnergies in a statement. "It has led in particular to very strong tensions on the world diesel markets of which France is a major importer."
It continued: "In this context, TotalEnergies would like to reiterate its transparent pricing policy, which consists of passing on without delay any downward or upward fluctuations in international diesel and petrol prices."
The company said the measures will apply from 13 March in all TotalEnergies stations in mainland France, including on motorways and in rural areas. It said it will reassess the situation at the start of April.
Iran says can fight for months as Israel strikes Beirut hotel
Government action
In February, TotalEnergies had promised a €1.99 per litre cap on both petrol and diesel for all of 2026, a system first introduced in 2023 when prices surged after Russia’s invasion of Ukraine.
The latest announcement comes ahead of a meeting with Economy Minister Roland Lescure with fuel distributors.
Lescure has asked distributors to correct any pricing “anomalies” found during checks. He suggested they could run at-cost fuel campaigns or introduce price caps similar to those used in the past.
On Wednesday, France backed the emergency release of oil reserves. Japan and Germany too announced plans on Wednesday to release strategic reserves.
Lescure said the decision to tap reserves was "part of a highly coordinated strategy".
G7 energy ministers also signalled they are ready to step up emergency measures if the crisis worsens.
"In principle, we support the implementation of proactive measures to address the situation, including the use of strategic reserves," the ministers said in a statement. "We agreed to stand ready to take all necessary measures in coordination with IEA members."
The French government is also meeting with several sectors heavily affected by rising fuel prices. Farmers are scheduled to meet officials on Thursday, fishermen on Friday and transport companies early next week, followed by representatives from the tourism sector.
(with newswires)
