Gas prices could rise 5%

GAS prices could rise on October 1.

GDF Suez is in negotiations with the government and is asking for 5%, said Le Figaro.

The company is said to be bargaining for the rise by suggesting an increase in the number of people who would be exempt from the rise on income grounds. The number would increase from 400,000 to 4 million, on the understanding prices can rise for the rest.

Consumer body CLCV has said such a rise would be unacceptable.

“They have found new gas supplies and its price has been dropping on the markets for three years,” said a spokesman. “However the customer does not benefit because in France its price is still aligned with that of oil. That’s no longer acceptable.”

With the presidential elections in view, another rise would be a delicate matter for the government, as gas bills have already increased 20% since April 2010.