Gas prices in France set to shoot up: Tips to reduce costs

Gas bills for French homes are set to increase significantly over the coming months due to the effects of the war in the Middle East.

In spite of the news of a temporary ceasefire in the conflict, a rise of 15.4% was confirmed on Wednesday (April 8) by the energy watchdog, the Commission de régulation de l’énergie (CRE). 

The increases are set to go into effect May 1 and will impact approximately 7.5 million households, or about 73% of all homes that rely on gas heating.

Experts however have warned that the increases could reach as high as 25%.  

Despite a small drop in gas prices in April – already finalised before the outbreak of the conflict – the prolonged impact of the war is likely to see prices increase considerably from May 1. 

The 15% increase was first confirmed by CRE president Emmanuelle Wargon to media outlet Le Parisien in March. 

Sylvain Le Falher, CEO of price comparison website Hello Watt, believes global constraints on the availability of gas could eventually push prices even higher, up to 25%.

This increase would correspond to around €260 per year in additional costs for a family of four in France using gas heating, or closer to €500 per year if the household also uses gas for heating water and cooking.

Will ceasefire slow down gas price rises?

The two-week temporary ceasefire announced late on Tuesday is likely to have a positive impact on gas prices, though at present it is hard to predict when or how these price drops will take place. 

The prolonged conflict between the US/Israel and Iran has seen several neighbouring Gulf States impacted, including Qatar.  

Qatar provides close to 40% of Europe’s liquefied gas supply, and transported around a quarter of all the world’s supply through the Strait of Hormuz until the outbreak of the conflict.

Under the ceasefire deal, the strait has reopened to tanker traffic. 

But with gas production facilities in the region hit several times during the conflict, and with repairs expected to take months if not years, it will take time for global gas supplies to return to pre-war levels. 

As with fuel costs, the higher base cost for the raw material purchased by suppliers to be used by residents in France is ultimately passed on to the consumer. 

What can households do? 

Similar to drivers impacted by petrol and diesel increases, residents who have a gas contract will ultimately end up paying more. They can however limit the impact. 

If you are on a market tariff (more on this below) the simplest way to reduce costs is by being more conscious of energy usage: lower the temperature of your heating by one or two degrees, be mindful of how much hot water you use when washing and showering, consider how long your gas cooker is on for, etc. 

You can also consider replacing your gas boiler with a more energy efficient system. 

While expensive, there are several long-term benefits, and you may be able to get partial funding through the government’s MaPrimeRénov’ eco-renovation scheme.

Finally, those on a market tariff, based on the CRE’s benchmark price for gas, can look to switch to a fixed contract. 

Market tariffs are flexible and fluctuate depending on the benchmark price of gas (regulated gas tariffs are no longer available in France), which can see bills rise or drop based on global gas prices. 

The start of the year saw the benchmark price drop steadily – in turn seeing bills reduce – however as the base cost of gas increases, market tariffs will also jump. 

In comparison, a fixed price contract sees consumers pay a set amount for their gas, regardless of the market price (although other elements of the contract remain variable).

This fixed price is the same throughout the length of the contract, usually one year but possibly up to two or three.

While this fixed amount can be higher than the base price, it protects against market fluctuations. 

It is possible to opt in for a fixed price contract at any time, and doing so before May 1, when market tariffs are set to increase considerably, is most beneficial. 

Our article here provides more information on fixed contracts. 

One potential move is to obtain a gas contract with TotalEnergies – usually one of the most competitive on the market as it produces at least part of its supply itself at refineries based in France – and then sign up to the group’s avantage carburant scheme. 

This locks fuel prices at €1.99 per litre for both petrol and diesel – below current averages in France – until the end of 2026. More information is available here.