Infotech Gas price: after the energy check of 100 euros, other measures to help the French?

Gas price: after the energy check of 100 euros, other measures to help the French?

The government, which has already announced an exceptional check of 100 euros in December for six million low-income households, “Working on additional measures” to help the French faced with a surge in the price of gas, said Tuesday, September 28, his spokesperson Gabriel Attal, on Europe 1.

“Today there are indeed energy prices which are increasing in France as in our neighbors due to a very strong economic recovery, and therefore a very strong demand for energy”, underlined Gabriel Attal. After the “Measures that have been taken on purchasing power (…) in addition to the energy check that has been increased by 100 euros for 6 million households, we are obviously considering other measures, in particular with regard to the price of gas “, he added.

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Shortly after the statements by the government spokesperson, a government source told AFP that new measures will be announced. “Before the end of October”. The executive seeks to ” to anticipate “ for “Mitigate the effect of these increases”.

Also according to this source, these measures aimed at households but also at businesses, would not necessarily be tax levers (VAT) or a new extension to the energy check, but could concern upstream smoothing mechanisms in the construction of the price.

Soaring prices across Europe

The regulated gas tariffs applied by Engie will once again jump, by 12.6% October, in the wake of rising market prices, the regulator announced on Monday.

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Faced with the sharp rise in gas prices – but also potentially electricity in 2022 – the government recently announced that nearly six million low-income households would benefit from an exceptional check for 100 euros in December.

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Gas prices are at very high levels in Europe due to various factors: low storage, high demand for liquefied natural gas (LNG) in Asia and the inability of Norway and Russia to increase their deliveries.

The reduction in VAT claimed

The UFC-Que Choisir which advocates a drop “At least temporary” VAT to compensate for this historic increase, compares this energy check of 100 euros proposed by the government to ” a joke “. The consumer association denounces, at the microphone of France Info this morning, an announcement which is similar to ” of communication and the language of wood ”.

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The successive increases in the price of gas are also provoking strong reactions among political leaders.

“What is most scandalous about the crazy increases in the prices of gasoline, gas, electricity, is that thanks to taxes and VAT on taxes, the more the French suffocate, the more the state is getting richer ”, denounced the RN presidential candidate Marine Le Pen.

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“It’s a social time bomb that will come very quickly, like the yellow vests. It’s more violent than the “yellow vests”, Because this increase is much higher than that of the carbon tax”, for his part warned on France 2 the former socialist candidate Ségolène Royal. According to her, three decisions have to be made: “Lower taxes” on energy, “Limit the margins of distributors” and “Restore the social tariff for energy”.

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