By Inti Landauro
PARIS-- A gasoline price cut, brokered by the French government
and aimed at shielding consumers from rising oil prices, is
manageable for oil major Total SA (TOT) and is part of a long-term
commercial plan, the company's Chief Executive Christophe de
Margerie said Tuesday in an interview with BFM TV.
"It is a way to show our customers Total cares about their
situation," de Margerie said.
Earlier Tuesday, French Finance Minister Pierre Moscovici had
said the government had agreed with oil companies to cut gasoline
and diesel prices by up to six euro cents (7.5 dollar cents) a
liter for three months. Half of the price cut will be funded by the
government and the other half by distributors. The cut would cost
the government about EUR300 million, Moscovici said.
The move answers French President Francois Hollande's election
promise to freeze gasoline prices. After his election in May prices
fell, making such a freeze unnecessary.
Amid growing tensions in the Middle East, prices for diesel--the
most common fuel in France--reached 145.92 euro cents a liter last
week, the highest weekly average this year, according to government
data. Last week, standard gasoline prices reached 164.82 euro cents
a liter, just below the 166.64 high recorded in March.
Write to Inti Landauro at inti.landauro@dowjones.com
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