BP Plc, Europe?s largest oil company, and Total SA, the largest refiner in the region, said they would drop pump prices by 2 to 3 cents at their French service stations, after the French government threatened a windfall tax on ?exceptional? profits and enforced increased investment in renewable energy.

Europe's finance ministers, meeting in Manchester in the UK on Friday, were expected to step up the attack on Saturday, urging the oil industry to increase refining capacity, and calling for greater transparency in the oil market to tackle speculation.