Rising Gas Prices: How Political Parties are Tackling a Growing Concern in France

The recent rise in gas prices has caused concern among millions of French citizens. The increase of almost 12% in gas prices, which took effect on Monday, is mainly attributed to the rise in gas network maintenance costs and market prices, as announced back in March. This hike is expected to lead to an average annual gas bill of 1,184 euros on July 1, up from 1,060 euros in June.

The Energy Regulatory Commission (CRE) has set the average benchmark price of kWh at around 13 cents for July. However, this price is still lower than the January tariff shield ended. Despite the increase in gas transmission costs borne by the GRDF distribution network manager being necessary to cover maintenance and modernization expenses for gas infrastructure as well as integrating green gas into pipelines, this measure has sparked concerns among citizens about their purchasing power.

The issue of rising energy prices has become a central point of discussion during the ongoing legislative elections. Political parties have proposed various measures to address these concerns. The Macronist Renaissance party aims to create an energy renovation fund to assist middle and working-class households with home insulation and decarbonization. Meanwhile, Minister of Economy and Finance Bruno Le Maire has announced a decrease in regulated electricity prices for 2025.

On the other hand, the National Rally party plans to lower the VAT rate on gas, electricity, and fuels from 20% to 5.5%, which could cost around 10 billion euros per year. However, this measure would need approval from Brussels and may face challenges in implementation. The New Popular Front (NFP) proposes reducing energy company margins by lowering VAT rates and freezing prices of basic necessities through decree to address inflation concerns and ensure fair competition at the European level. Political parties are exploring various solutions to mitigate the impact of rising energy prices on French households.

Overall, it seems that political parties are aware of the importance of addressing rising energy prices before they affect voters’ purchasing power negatively during upcoming elections.