Gas prices to drop slightly for most consumers in France in June
Prices will decrease by 4.8%, following a sharp rise last month
Despite the small decrease, experts say prices could rise again
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A drop in gas prices is set to take place this June, following last month’s record surge, according to the French Energy Regulatory Commission (CRE).
The regulator announced a 4.8% reduction in the benchmark gas price from June 1, meaning households with subscriptions linked to the monthly benchmark price will see an average reduction of €1.26.
However, the decrease follows a sharp 15.4% increase in May, meaning gas prices still remain much higher than they were in April.
The change will affect around six million households with contracts indexed to the benchmark gas price, representing approximately 60% of residential gas subscribers in France.
Households with fixed-price contracts will not be affected by this change.
The decrease comes after gas prices rose sharply in May due to tensions in the Middle East, which pushed energy prices higher across Europe. Although prices have now begun to fall, they still remain well above the levels seen before the crisis started.
According to the CRE, only the “supply” part of the gas bill will change in June - taxes and network charges will remain the same. The supply price is updated every month depending on conditions on the European gas market.
The benchmark gas price, known as the PRVG, has been used as a guide for consumers and suppliers since regulated tariffs ended in France in July 2023.
In June, the benchmark gas price will fall to €152.86 per megawatt-hour, compared with €160.54 in May. The CRE said the reduction follows “a drop in prices on the gas markets in April compared to March”, after prices had “significantly increased due to the conflict in the Middle East.”
Despite the small decrease, experts warn that prices could rise again later this year. Energy comparison website Selectra predicts that tensions on the liquefied natural gas (LNG) market could continue to affect prices in the upcoming months.
