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Fuel: why TotalEnergies didn’t limit prices before Auto Plus news in your smartphone Auto Plus news in your inbox

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Fuel: why TotalEnergies didn’t limit prices before Auto Plus news in your smartphone Auto Plus news in your inbox

Fuel prices were the highest in almost a year and a half. A real outbreak that follows a period of very low prices due to successive restrictions. But the war in Ukraine, as well as rising inflation and taxes, have taken their toll on this cheap gasoline, not to mention import cuts enacted by oil-exporting countries. As a result, prices have risen sharply, and the situation is still not improving. True, the authorities put it in place discounts and compensationsbut this was not enough for motorists.

New help

For its part, TotalEnergies has also proposed to lower gas prices by 20 cents and 10 cents over the past year. For several weeks now the company also limits fuel prices at service stations off highways. So the price is capped at €1.99, except for certain fuels such as Excellium. But why didn’t the firm create this offer earlier? There is a reason, and it is obviously financial, as explained by our colleagues at Auto-Moto, who managed to speak with the management of TotalEnergies.

High cost

She explains that “ if we were to introduce this measure for 2022, it would cost us more than 600 million euros“. However, the company does not say how much this measure is costing it now, when fuel is still priced very high. In addition, the sum of all discounts offered by the distributor was also a significant amount, about 550 million euros. But don’t panic for the firm, which posted a profit of €19.1 billion in 2022.

Author: Mary Lizak
Source: Auto Plus

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