By TARA PATEL

French refiners may close more than one plant as fuel demand weakens, following losses of as much as 3.5 billion euros ($3.8 billion) over the past six years, an industry lobby group said.

Should Total, which operates five of France’s eight refineries, halt production at one of its sites, more closures would probably follow, Francis Duseux, president of the Union Francaise des Industries Petrolieres, which represents oil companies in the country, told reporters on Tuesday in Paris.

“Unfortunately I don’t think it will be finished,” said Duseux, the former head ExxonMobil’s French unit. “It will not stop at one refinery except if the state intervenes.”

French refineries lost hundreds of millions of euros last year as the 22 euros/ton average margin for processing crude was below the break-even level, UFIP said. While Total has yet to unveil details of arefinery reorganization planned for the coming months, CEO Patrick Pouyanne has said it won’t lead to the complete shutdown of any sites or job losses.

A spokesman for Total declined to comment on when the company will give more information on its plan.

French labor unions have said Total’s southern Le Mede site could be converted to a biofuel plant, with a halt to crude processing. Exxon operates two refineries in France, while another plant is part-owned by INEOS.

An increase in refinery margins to 45 euros/ton in January and February “won’t last,” said Duseux. “The profitability of European refineries is falling” as utilization rates drop, he said.

French fuel-products demand dropped 2.2% to 74 million tons last year, dipping below a low reached in 1985 of 75 million tons, according to UFIP data.

European refiners have seen a drop in gasoline exports to North America and Africa in recent years, partly on stiffer competition from US producers benefiting from the shale-energy boom, according to UFIP. Of the 79 refineries operating in Europe, between 20 and 30 could be shut over the next 25 years, Duseux said.

Total, Europe’s biggest refiner, announced a plan last month to shut a crude distillation unit at its Lindsey plant in the UK, eliminating 180 jobs. It has pledged to cut European refining capacity by a fifth from 2011 to 2017.

Separately, UFIP said the French government continues to block permit awards and renewals needed for oil and gas exploration and production at home.