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Update: Market Chatter: France Mulls Potential Tax on TotalEnergies' Excess Q1 Profits as Energy Prices Climb

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France has not ruled out a potential exceptional tax on TotalEnergies (TTE) to redistribute excess profits earned by the French energy giant, amid soaring global energy prices, the country's Budget Minister David Amiel told Bloomberg in an interview on Sunday.

Speaking with France's Radio J, Amiel said that "there is no taboo" around implementing such a tax, but added that, at least for now, the most effective way to ease pressure on household budgets was by "capping fuel prices at the pump."

This comes following a strong Q1 performance by the company, prompting a boost to its dividends and stock buybacks, even as it struggles with disruption to its operations in the Persian Gulf.

TotalEnergies CEO, Patrick Pouyanne, had warned last month that any such surcharge by the French government would lead to the company bringing an end to fuel price caps at its stations.

While no decision has been made, Amiel said that "when there are exceptional profits, there should be exceptional redistribution," adding that while France was lucky to have Total, the company was just as lucky to have France.

TotalEnergies responded to' request for comment, making reference to its May 7 statement which said that it was a private company and was taxed for its corporate business in France accordingly.

Taxing the company for its overseas operations, it said, would equate "to ignoring the reality of international oil taxation and introducing double taxation, contrary to the principle of tax territoriality, a principle that the European Union and France consistently uphold in the international order,".

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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