Total Caps Fuel Prices in France amid Historic Oil Market Volatility

French energy giant TotalEnergies announced Thursday that it will introduce a temporary cap on gasoline prices at its service stations across France, citing “exceptional market volatility” driven by sharp swings in global oil prices.

The company said the measure comes as energy markets experience intense instability following Iran’s closure of the Strait of Hormuz after U.S. and Israeli airstrikes, a development that has placed significant economic pressure on energy-importing regions, particularly Europe.

Under the new policy, the price of gasoline in TotalEnergies stations will be limited to €1.99 per liter ($2.30), while diesel prices will be capped at €2.09 per liter. The pricing measure will take effect on March 13 and remain in place until the end of the month.

In a statement, TotalEnergies said it would reassess market conditions in early April before deciding whether to extend or adjust the price cap.

Oil markets have experienced sharp fluctuations since the outbreak of the conflict on February 28, with benchmark crude prices surging dramatically. Brent crude has risen more than 36% since the start of hostilities, while U.S. West Texas Intermediate has climbed nearly 39%.

Both benchmarks briefly exceeded $119 per barrel earlier this week, reaching their highest levels since mid-2022.

The conflict has effectively disrupted shipping through the Strait of Hormuz, leaving oil tankers stranded for more than a week and forcing some producers to slow or suspend output as storage facilities approach capacity limits.

During Thursday trading, Brent crude climbed to $100.22 per barrel, extending gains of more than 4% from the previous session, while U.S. crude rose to $95.41 per barrel.

The price surge has continued despite the International Energy Agency’s announcement of a coordinated release of 400 million barrels from strategic petroleum reserves, the largest such operation in the agency’s history.

As part of the initiative, the United States confirmed plans to release 172 million barrels beginning next week in an effort to stabilize global markets and ease supply concerns.