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France to block gas prices until April 1 due to continued increases | Abroad

Gas prices in France will be blocked until April. French Prime Minister Jean Castex announced this today. the announced price increase of 1 October will still go ahead.




Gas prices in France have risen by 57 percent since January. Castex today announced the creation of a “tariff shield”. The rate will rise Friday as previously announced, but will not change until world prices fall, not expected until March or April. “There will be no further increase in gas prices,” the prime minister said.

The usual and expected fall in gas prices in the spring, after the heating season, will then only be partially passed on to consumers, in order to recover the extra amounts paid by distributors during the winter without being able to invoice consumers. So it sounds like a “flattening” of the prices.

Consumer organizations had called for a reduction in the tax on natural gas, but that will not happen.

According to estimates by the French government, electricity tariffs will rise by 12 percent in February 2022, but the tariff shield will also be activated before that. “We will prevent this by reducing an existing tax on electricity to limit this increase to 4 percent,” said Castex. The regulated electricity price is only changed twice a year, unlike the gas price, which is revised monthly.

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