Oil costs to push up French gas prices 10 pct

22nd October 2004, Comments 0 comments

PARIS, Oct 22 (AFP) - The French government will raise gas prices by nearly 10 percent on November 1 owing to surging oil prices, the French daily Le Parisien reported Friday.

PARIS, Oct 22 (AFP) - The French government will raise gas prices by nearly 10 percent on November 1 owing to surging oil prices, the French daily Le Parisien reported Friday.

An economy ministry spokesman said that "nothing had been done or decided" about an eventual increase of gas and electricity prices, but noted that gas prices were directly linked to the price of oil.

Le Parisien said that the government would announce on November 1 a price increase of 7.0-9.5 percent for gas because of the oil price spike, and an increase of about 3.0 percent for electricity.

Oil prices have shot to record highs recently and on Friday were headed toward USD 55 a barrel, compared with USD 43 at end-July and 27 dollars in November 2002.

GDF and electricity counterpart Electricite de France have been clamouring for months for a tariff increase.

EDF chief Pierre Gadonneix has requested a price rise of 7.5 percent over three years, including an initial increase of 3.6 percent on November 1, the newspaper reported. About 80 percent of electricity used in France is produced by French nuclear power stations.

The state-controlled prices are re-evaluated twice a year, on May 1 and November 1.

Economy Minister Nicolas Sarkozy said in late July that an increase in EDF tariffs should not exceed 2.4-2.5 percent.

© AFP

Subject: French News

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