French government's proposed cap on retail margins at gas stations faces stiff industry opposition (updated)

Carrefour SA

15/04/2026 12:39

France considering capping margins for fuel distributors

Companies representing more than a third of service stations oppose

Companies ask state to target refining margins instead

French major Total owns half of French refineries, a quarter of service stations

Recasts April 14 story with industry lobby appeal to government against draft law

By America Hernandez

PARIS, April 15 (Reuters) -
France's proposal to cap profit margins on transport fuels sold throughout the country's service stations prompted an immediate backlash from the distribution industry, according to a lobbying letter seen by Reuters on Wednesday.

The French government said on Tuesday it had submitted for consultation a draft decree that would fix prices to ensure fuel distributors did not earn margins higher than those seen in January and February, based on a sliding five-day average of wholesale prices at Rotterdam.

It is one of a
 host of measures
 European countries are considering from
Dublin
 to
Bucharest
 to ease consumer pain from
 record high oil and fuel prices
 due to disruptions caused by the war in Iran.

In a letter to the prime minister dated April 14, France's Federation of Commerce and Distribution (FCD) argued the decree would force distributors operating on margins of 1 to 2 eurocents per litre to sell at a loss due to the lack of real-time price updates — and leave untouched the vertically integrated oil companies who they say are earning much larger profits from the crisis.

The letter, which has not been made public, was signed by Carrefour CARR.PA CEO Alexandre Bompard, Cooperative U CEO Dominique Schelcher, Mouvement E. Leclerc Executive Committee Chair Philippe Michaud, Groupement Les Mousquetaires President Thierry Cotillard, and Barthelemy Guislain, president of the Mulliez Family Association, which owns the Auchan supermarket chain.

Together the five companies represent more than a third of France's service stations, according to Reuters calculations.

"This decree would make large distribution chains the convenient variable of adjustment of a crisis it has not created... while imposing absolutely nothing on the refiner-distributors who have captured considerable gross margins since the beginning of the conflict in Iran," the letter reads.

Though not named in the letter, French oil major TotalEnergies TTEF.PA owns three of France's six oil refineries and a quarter of the country's service stations.

TotalEnergies is expected to announce significant trading profits on Thursday in its first-quarter earnings snapshot from rising oil prices and higher refining margins.

TotalEnergies declined to comment on the letter, but said it was the only distributor in France to
voluntarily cap prices
 at the pump.

Canadian energy group North Atlantic also
recently acquired
 the French Esso refinery in Gravenchon, which supplies about 7% of French fuel stations.

 (Reporting by Forrest Crellin and America Hernandez; Editing by Inti Landauro and Makini Brice)

 ((Inti.Landauro@thomsonreuters.com;))