Fuel rebate cost Total Energies $169M, says group’s CEO

By Shweta Desai

PARIS (AA) – Total Energies fuel rebate at the French gas stations has cost the group €171 million ($169 million), the group’s CEO said on Wednesday.

During a hearing at the national assembly on "superprofits by gas and oil companies amid the energy crisis," Patrick Pouyanne told lawmakers that since Sept. 1, the group has been offering a discount of €20 per liter of fuel in its stations, in addition to that of 30 cents from the government. This measure cost €171 million to Total Energies.

He said he did not know how to define a superprofit. The breakeven point of Total Energies is at $25 per barrel but it is the markets that set the price of gas and oil.

"We accept strong risk-taking in the face of price volatility,” he added.

The multi-energy company reportedly generated $5.7 billion in profit in the second quarter.

According to Pouyanne, the company pays approximately "€1.6 to €1.9 billion per year" in tax and as a social contribution. Globally, the company paid $16 billion in taxes in 2021 and this year it will pay double the amount, roughly $30 billion.

Socialist and leftist lawmakers are likely to introduce a referendum bill on Wednesday to introduce taxes on superprofits generated by large companies.