Live
Britain and Turkey advance free trade talks after sixth round in London·NATO grants Ukraine access to central procurement agency for faster arms deals·Polish cities introduce maximum property tax rates for 2027 amid budget pressures·UK government identifies exposure after critical PHP security flaws discovered by AI·Polish soldier acquitted over accidental shooting of Syrian refugee at Belarus border·Russia signals readiness to resume Ukraine peace talks with US after Putin-envoy meeting·Burnham backs mandatory suicide prevention training for social workers·Government accepts all 27 recommendations from landmark review into school antisemitism·Poland’s RCB emergency alerts criticised for vague wording and lack of clarity·Poland plans to extend paid carer’s leave to parents of teenagers up to 18·
Business & money · FUEL PRICES

France and Italy cap fuel prices as Germany cuts tax by 17 cents per litre

Major oil firms introduce voluntary price limits in southern Europe while Berlin takes tax-cutting route amid market structure differences.

PUBLISHED
READING TIME
4 MIN

Major oil companies in France and Italy have voluntarily introduced price caps at their petrol stations in response to high fuel costs, while Germany has taken a different approach by cutting taxes on petrol and diesel, according to German broadcaster Tagesschau.

TotalEnergies has set a maximum price of €1.99 per litre for E10 petrol and €2.25 per litre for diesel across its French network. In Italy, energy giant Eni introduced a 30-day price limit on 28 September through its Enilive chain, capping petrol at €1.99 and diesel at €2.19 per litre. The Italian network IP, owned by Socar, has joined the initiative, bringing the total coverage to around 8,500 stations – approximately 39 per cent of the Italian market.

The Italian caps translate to savings of roughly 17 cents per litre, or between €8.45 and €9.35 on a typical 50-litre tank fill, Bankier.pl reports.

TotalEnergies estimates the programme will cost between €250 million and €300 million, whilst Eni puts its monthly expense at around €100 million. However, both firms are recouping losses elsewhere in the supply chain. In the first half of 2025, TotalEnergies doubled its net profit to €11.2 billion, while Eni’s adjusted profit rose 43 per cent to over €3.6 billion.

Backlash from independent operators

The price caps have triggered complaints from smaller competitors who lack their own refineries. According to Euronews, the French association FF3C, representing a thousand independent stations, has filed a formal complaint with the competition authority, accusing TotalEnergies of pricing below wholesale costs.

Michel-Edouard Leclerc, head of the E.Leclerc supermarket chain, told Euronews that small stations and retailers cannot match the caps without operating at a loss. On Corsica, several petrol stations temporarily suspended operations because wholesale fuel prices were several dozen cents higher than the retail price set by TotalEnergies. A rush by motorists to cheaper stations left one in ten TotalEnergies outlets in France facing temporary fuel shortages.

TotalEnergies chief executive Patrick Pouyanné has warned that if the French government imposes a windfall tax on extraordinary profits, the company will immediately withdraw the price limits.

Tomaso Duso from the German Institute for Economic Research (DIW) told Tagesschau that oil giants are currently earning enormous sums in the refining segment, where margins are very high. “They can therefore give back part of their small retail margin at stations, implementing a tacit agreement with governments aimed at avoiding a windfall profits tax,” he explained.

Germany takes tax-cutting route

A similar voluntary scheme would be difficult to replicate in Germany because of the country’s fragmented fuel market, Tagesschau reports. Germany’s roughly 14,000 petrol stations are distributed among numerous operators with no single “national champion”. The largest player, Aral, holds just 15–16 per cent of the market, Shell has over 13 per cent, Circle K/TotalEnergies and Esso each control around 8 per cent, and Avia and Jet hold approximately 6 per cent each. By contrast, TotalEnergies directly controls about 30 per cent of the French market and Eni more than 21 per cent in Italy.

Instead, Germany has opted for a legislative solution. From 1 October, fuel prices at German stations have been falling following approval by the Bundestag and Bundesrat of a law cutting energy tax on petrol and diesel. The reduction amounts to roughly 17 cents per litre and is set to remain in force until the end of December 2026.

According to the German government’s estimates, the tax cut will reduce tax revenue by €2.485 billion, with half of the cost borne by Germany’s federal states.

What this means for Poles in the UK

While these fuel price interventions are limited to France, Italy and Germany, they illustrate differing European approaches to managing energy costs – an issue affecting motorists across the continent, including in the United Kingdom. British fuel prices remain influenced by global oil markets, domestic taxes and retailer margins, and the UK government has not announced comparable relief measures at present.

For Poles living in the UK and planning trips to the continent by car, it is worth noting that petrol and diesel in France and Italy may be capped at below-market rates at major-brand stations until the end of October, though independent operators may charge more. Germany’s tax cut is in effect until December 2026, potentially offering sustained savings for cross-border travellers and those visiting family in Poland via German routes. Always check current fuel prices and availability before long journeys, particularly in areas served by smaller operators.

Source: Bankier.pl — finanse. Written by the newsroom with the help of AI tools, based on the source reporting. Editorial standards

Leave a comment

Your email address will not be published. Required fields are marked *