TTE TotalEnergies SE

By Joshua Kirby

TotalEnergies SE should prolong a program of hefty discounts on gasoline at its stations amid strike action in France that has left many drivers unable to benefit from the lower prices, a government minister said Tuesday.

Blockages of refineries and depots owned by the French oil-and-gas giant, as well as by Exxon Mobil Corp.-owned Esso, have led to shortages of gasoline at many stations, especially in the Paris region and in the north of the country. As such, the government is asking TotalEnergies to prolong a subsidization of prices introduced over the summer, Transportation Minister Clement Beaune told radio station RMC.

"The gasoline blockages that we're seeing at the moment should entail an extension to the discounts. That is what we are asking of Total," Mr. Beaune said, noting that the current discount was set to end at the beginning of November.

"We're looking at Total's part to be extended for some days, since the French people haven't been able to benefit from the discounts," he said. TotalEnergies didn't immediately respond to a request for comment regarding the request.

A subsidy of 20 European cents (19 U.S. cents) a liter was set to fall to 10 cents from Nov. 1 to the end of the year. TotalEnergies, France's largest gasoline retailer, introduced the subsidies over the summer amid skyrocketing prices.

Last month, TotalEnergies Chief Executive Patrick Pouyanne told the French National Assembly that the company had taken a hit of nearly EUR500 million from the discounting program.

Mr. Beaune, meanwhile, said the government would work to end the blockages that began at the end of September.

"The problem is a serious one, but a localized one, specific to Total," the minister said. "Social dialogue needs to begin again, there needs to be an agreement. We won't allow the situation to worsen. If there's no agreement, we will take steps," he said.

Mr. Beaune stressed that there is no shortage of supply, but that reserves are blocked. "The gasoline hasn't evaporated, it's just blocked. And so we need to unblock it, so that the French people can access it," he said.

Strike action continued among workers at Esso on Tuesday, despite an agreement with the company and some labor unions.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

October 11, 2022 05:38 ET (09:38 GMT)

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