French PM says gas prices to rise less than inflation

PARIS (Reuters) – French Prime Minister Jean-Marc Ayrault said on Wednesday that gas prices in France would not rise more than the rate of inflation and that the government was preparing a plan to make gas and electricity more affordable for consumers.

Last week, French utility GDF Suez made a formal request to France’s energy regulator to have gas prices raised by 5 percent, a request which it subsequently lowered to 4.1 percent, according to the Journal du Dimanche weekly newspaper.

On Monday, Finance Minister Pierre Moscovici hinted that the government may refuse to agree to the utility’s request for a revision of the regulated price in July.

When Ayrault was asked on TF1 television if gas prices would rise by 5 percent, he said: “There is no question of the gas prices rising more than inflation.”

He added, “The government is preparing new measures so that French people pay an affordable price for both gas and electricity.”

In May, the Insee national statistics office said consumer prices had risen by 0.1 percent in April from the previous month, for an annual inflation rate of 2.1 percent.

(Reporting By Nicholas Vinocur; Editing by Marguerita Choy, Christian Plumb and Jason Neely)

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