By Dimitri Rhodes

Oct 30 (Reuters) - TotalEnergies will cut diesel prices to €2.15 ($2.40) a litre in around 700 gas stations across France on Saturday, it said, about 9% lower than the current national average, as it continues to undercut competitors at a time of near-record fuel prices. 

The lower offer comes a day before France releases 10 million barrels of diesel from its strategic reserves to help reduce fuel prices that have been a major trigger for protests across the country this month. 

Further demonstrations are planned for Saturday and next week, despite government measures to ease concerns around soaring living costs.

Paris-headquartered TotalEnergies said it is passing on the savings from the fuel stocks ahead of their release in its 705 Access stations, which account for 60% of its fuel sales in France. The company says it supplies about 25% of the fuel sold in France.

It said it will also maintain a nationwide diesel price cap of €2.25 per litre.

Diesel prices in France reached record levels in September, averaging above €2.39 per litre, and were around €2.35 per litre on October 26, according to government data published by research platform Global Petrol Prices.

Some French lawmakers have criticised TotalEnergies for huge profits generated since the start of the US-Israeli war with Iran, prompting a heated debate in parliament on Wednesday on whether it should face higher taxes.

CEO Patrick Pouyanne has said the group's lower fuel prices, offered since the start of the war, are benefiting French consumers.

($1 = 0.8957 euros)

(Reporting by Dimitri Rhodes in Gdansk, editing by Anna Pruchnicka, Dominique Patton and Xevi Fontdegloria)

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