Faced with the rise in energy and fuel prices, Jean Castex announces an “inflation allowance” of 100 euros

The subject is sensitive, because it affects the daily life of the population: given the rise in energy and fuel prices, the government has decided to take measures, announced by Jean Castex, Thursday, October 21.

A “Inflation compensation” of 100 euros will thus be allocated automatically to each person who earns less than 2,000 euros net per month, declared the Prime Minister to the “20 hours” of TF1. It will be paid, without any necessary action, to employees (from the end of December), civil servants (January), self-employed, unemployed or retirees (” a bit later “), i.e. 38 million people in total. The measure applies to motorists, as well as to all those who do not go to work by car.

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The head of government compared this amount of 100 euros to a sum of 80 euros which he assimilates to the bill, on average, of the increase in fuels over the year: it is based on 9 cents per liter more at the pump over the year and an average distance traveled of 14,000 kilometers.

Despite this additional expenditure of 3.8 billion euros, the Prime Minister assured that France would keep its commitments in terms of public deficit. He also wanted to “Confirm, this evening, what[’il avait] said to this antenna on September 30 ” : “In 2021, the purchasing power of the French will increase, I look forward to seeing you. “

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Gas price lock

In addition, the price of gas will be blocked “Throughout the year 2022”, and not just until April. The experts “Tell us that, probably, the recession” prices “Will be slower” than expected and “So we took our responsibilities by maintaining the price freeze throughout” next year, said the head of government.

Mr. Castex had already announced, on September 30, the freezing of the price of gas for about five million subscribers to cope with the constant increases for months. “Gas prices, compared to 2019, have been multiplied by six”, observed the Prime Minister, Thursday.

This “Tariff shield” however, was due to expire in April 2022, based on forecasts that “The price of gas should plummet” on this horizon.

According to the smoothing mechanism planned by the executive, from 2023, consumers will pay a little more for gas than market prices, so that the sums not paid by subscribers in 2022 are gradually recovered by the operators.

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The World with AFP